Chee Corporation has gathered the following data on a propos

Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.)

What is the materials quantity variance for the month? (Input the amount a as positive value. Leave no cells blank - be certain to enter \"0\" wherever required. Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (i.e., zero variance.)

Solution

Ans: The payback period for the investment is closest to:6.1 years

Explanation:

Payback period = Investment required ÷ Annual net cash inflow

                            = $470000 ÷ $77000 = 6.1 years