Maple Thread Inc. has gathered the following data on a propo…
Maple Thread Inc. has gathered the following data on a proposed investment project (Ignore income taxes.): Investment in depreciable equipment $ 640,000 Annual net cash flows $ 86,000 Life of the equipment 20 years Salvage value $ 0 Discount rate 9% Maple uses straight-line depreciation on all equipment. Assume that cash flows occur uniformly throughout each year, except for the initial investment. The payback period for the investment is closest to: