Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 7 years with no salvage value at the end of the 7 years. Ataxia's internal rate of return on this equipment is 9%. Ataxia's discount rate is also 9%. The payback period on this equipment is closest to (Ignore income taxes.):
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
Answer Payback... View the full answer