Vilas Company is considering a capital investment of $190,300 in additional productive facilities. The new...
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Vilas Company is considering a capital investment of $190,300 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $13,800 and $49,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view PV table Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.50.)
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