Calculate the payback period for Proposal X.
Nubela Manufacturing is considering two alternative investment proposals with the following data:
A) 5 years
B) 4 years
C) 9 years
D) 8 years
A) 5 years
Explanation: Payback = Amount invested / Expected annual net cash inflow
Payback for Proposal X = $10,700,000 / $2,140,000 per year = 5 years
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