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Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000. Based on the company's analysis, the product will generate $200,000 from the first year till
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34 votes
34 votes
Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000. Based on the company's analysis, the product will generate $200,000 from the first year till perpetuity. According to this, the payback period is ________.

a. 10 years.
b. 6 years.
c. 3 months.
d. 4 years.

User Rbrc
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1 Answer

21 votes
21 votes

Answer:

d. 4 years.

Step-by-step explanation:

The payback period is the length of time that it takes for the future cash flows to equal the amount invested in a project. It takes 4 years to get $800,000 for Natal Technologies product.

User Mohammed Swillam
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