The New Watch Times is considering a new printing press to increase it

The New Watch Times is considering a new printing press to increase its productive capacity. If the cost of the press is $500,000 and the relevant cash flows from the project are $75,000 per year over the next ten years, what is the payback period?

A) 6.00 years
B) 6.50 years
C) 7.00 years
D) 6.67 years
E) 7.50 years

ANSWER

D