(6) Hayden Company is considering the acquisition of a machine that costs $500,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $94,000, and annual income from operations of $79,900. What is the estimated cash payback period for the machine?
(6) Hayden Company is considering the acquisition of a machine that costs $500,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $94,000, and annual income from operations of $79,900. What is the estimated cash payback period for the machine?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...
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(6) Hayden Company is considering the acquisition of a machine that costs $500,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $94,000, and annual income from operations of $79,900. What is the estimated cash payback period for the machine?
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