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Author Question: Minor Company is going to invest in a new product line. Minor estimates that the net cash flows from ... (Read 20 times)

jordangardner

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Minor Company is going to invest in a new product line. Minor estimates that the net cash flows from the new line will be $25,000 per year. The initial investment required to implement the new line will be $500,000. The company requires a rate of return of 8% and the new product line is expected to span a time period of 15 years. What is the payback period of the new product line?
◦ 25 years
◦ 12.5 years
◦ 20 years
◦ 1.6 years


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Marked as best answer by jordangardner on Feb 5, 2023

AarionnaH

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jordangardner

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


peter

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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