(Ignore income taxes in this problem.) Limon Corporation is considering a projec
ID: 2460579 • Letter: #
Question
(Ignore income taxes in this problem.) Limon Corporation is considering a project that would require an initial investment of $227,500 and would last for 5 years. The incremental annual revenues and expenses for each of the 5 years would be as follows:
(Ignore income taxes in this problem.) Limon Corporation is considering a project that would require an initial investment of $227,500 and would last for 5 years. The incremental annual revenues and expenses for each of the 5 years would be as follows:
Explanation / Answer
Answer:
Payback Period is the length of time within which the amount initially invested in the project is retured back to the organisation.
Payback Period = Initial Investment / Annual Cash Flow = $227,500 / $115,200 = 1.9748 years
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