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Author Question: Latimer Corporation is considering two alternative investment proposals with the following ... (Read 19 times)

B

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Latimer Corporation is considering two alternative investment proposals with the following data:

Proposal XProposal Y
Investment $812,500 $390,000
Useful life8 years8 years
Estimated annual net
cash inflows for 8 years
$125,000 $78,000
Residual value $40,000 $-  
Depreciation methodStraight-lineStraight-line
Required rate of return14%10%


How long is the payback period for Proposal X at Latimer Corporation?
◦ 10.42 years
◦ 20.31 years
◦ 5.00 years
◦ 6.50 years


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Marked as best answer by B on Jan 5, 2020

amy.lauersdorf90

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B

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Reply 2 on: Jan 5, 2020
Excellent


parker125

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Reply 3 on: Yesterday
:D TYSM

 

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