The ABC company is planning to purchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 years with zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X? O A) 3,5 OB) 4,5 OC) 3,0 OD) 4,0 OE) 2,5

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
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3. The ABC company is planning to purchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 years
with zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X?
OA) 3,5
OB) 4,5
Oc) 3,0
710
178
OD) 4,0
OE) 2,5
374895058
1718008
180506
wwww.
171008
Transcribed Image Text:3. The ABC company is planning to purchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 years with zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X? OA) 3,5 OB) 4,5 Oc) 3,0 710 178 OD) 4,0 OE) 2,5 374895058 1718008 180506 wwww. 171008
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