Calculate the payback period for Investment A. (Round your answer to two decimal places.)

Dragonfly, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available:







A) 2.22 years

B) 2.89 years

C) 1.00 year

D) 3.61 years


D) 3.61 years
Payback for Investment A = Amount invested / Expected annual net cash flow
= $101,000 / $28,000 = 3.61 years

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