How long is the payback period for an investment projects

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Reference no: EM131502938

1. How long is the payback period for an investment projects $25,000 to start, and generates $7,000 a year after-taxes for six years?

a. 3 years

b. 4 years

c. 2 years

d. 6 years

2. The tax savings from an expense item are $75,000 for a company that spends 25% of its income to taxes.

How much does the item cost before tax?

a. $250,000

b. $ 200,000

c. $150,000

d. $300,000

Reference no: EM131502938

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