Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment$30,000 Annual cash inflows $6,000per yearSalvage value of equipment$0 Life of the investment 15yearsRequired rate of return 10%The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.The payback period for the investment is:
A. 2 years
B. 7.143 years
C. 5 years
D. 15 years
Answer: C
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