Lean thinking has received considerable attention in the last decade, but tools such as kanbans cannot be used in all production environments

Income from Operations (equation)

Logan, Inc is evaluating two possible investments in depreciable plant assets

The company uses the straight-line method of depreciation. The following information is available: Investment A Investment B Initial capital investment $101,000 $151,000 Estimated useful life 10 years 10 years Estimated residual value 0 $20,000 Estimated annual net cash inflow for 10 years $28,000 $47,000 Required rate of return 12% 12% Calculate the payback period for Investment A. (Round your answer to two decimal places.) A) 2.22 years B) 2.89 years C) 1.00 year D) 3.61 years