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Depaul University Operations And Supply Chain Management Assignment Help - The Keego Company

Question - (Ignore income taxes in this problem.) The Keego Company is planning a $200,000 equipment investment that has an estimated five-year life with no estimated salvage value. The company has projected the following annual cash flows for the investment: Year Cash Inflows 1 $120,000 2 60,000 3 40,000 4 40,000 5 40,000 Total $300,000 Assuming that the cash inflows occur evenly over the year, the payback period for the investment is _______ years. A. 2.50 B. 0.75 C. 1.67 D. 4.91 ***Please SHOW HOW to get this

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