Kizspy | Question: 10
(Choose 1 answer)
Creighton, Inc. has invested $2,165,800 on equipment. The firm uses payback period criteria of not accepting
any project that takes more than four years to recover costs. The company anticipates cash flows of
$424,386, $512,178, $561,755, $764,997, $816,500, and $825,375 over the next six years. What is the payback
period, and does this investment meet the firm's payback criteria? (Round your answer to two decimal places.)
A. 4.13 years; no
B. 4.13 years; yes
C. 3.87 years; yes
D. 3.87 years; no
