Problem:
Lester feed mill is spending 230,000 to update its factory. The company estimates that this investment will improve its cash inflows by 46,500 a year for ten years.
Required:
Question: What is the payback period?
A. 4.03 years
B. 4.95 years
C. 5.39 years
D. 5.67 years
E. project never pays back
Note: Show supporting computations in good form.