Top Posters
Since Sunday
r
4
L
4
3
d
3
M
3
l
3
V
3
s
3
d
3
a
3
g
3
j
3
New Topic  
bernie2981 bernie2981
wrote...
Posts: 3810
8 years ago
O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,920,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,500,000. The following information is available:

   Indiana proposal   Kentucky proposal
Required investment   $1,920,000   $2,500,000
Estimated life   10 years   10 years
Estimated residual value   $50,000   $80,000
Estimated annual cash inflows over the next 10 years   $400,000   $500,000
Required rate of return   10%   10%

The payback period for the Indiana proposal is closest to
A) 3.8 years.
B) 38.4 years.
C) 4.8 years.
D) 5.0 years.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 624 times
2 Replies
Replies
Answer verified by a subject expert
nucleinuclei
wrote...
Top Poster
Posts: 2158
8 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

wrote...
4 years ago
Thank you!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1480 People Browsing
Related Images
  
 3427
  
 1672
  
 583
Your Opinion
Who's your favorite biologist?
Votes: 608