Top Posters
Since Sunday
d
4
N
3
3
R
3
k
3
o
3
Z
3
j
3
s
3
d
3
J
3
1
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
bernie2981 bernie2981
wrote...
Go to Answer
Posts: 3810
Rep: 26 0
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 625 times
2 Replies
Replies
Answer verified by a subject expert
nucleinuclei
wrote...
#1
Top Poster
Posts: 2158
Rep: 418 0
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...
#2
4 years ago
Thank you!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1399 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 3428
  
 11139
  
 315
Your Opinion
How often do you eat-out per week?
Votes: 81
Previous poll results: Which of the following is the best resource to supplement your studies: