Multiple Choice
Rodriguez Inc.is considering a project that costs $200,000.The company expects the annual cash revenues to be $75,000 and annual expenses (including depreciation) to be $30,000.The project has a ten-year useful life and a residual value of $25,000.Assume Rodriguez Inc.uses the straight-line method of depreciation.
-Using the above information for Rodriguez,the project's payback period (rounded to two decimal places) is
A) 2.31 years.
B) 3.20 years.
C) 2.14 years.
D) 2.50 years.
Correct Answer:
Verified
Correct Answer:
Verified
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