Problem - Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.)
| Investment required in equipment |
$680,000 |
| Annual cash inflows |
$66,000 |
| Salvage value |
$0 |
| Life of the investment |
20 years |
| Required rate of return |
7% |
The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.
The payback period for the investment is closest to: