Antonio, Inc., has invested in new production equipment at a cost of $24,000. The equipment has an estimated useful life of eight years. The estimated annual sales and operating expense related to the equipment are as follows: Annual sales Labor costs. Depreciation of equipment. Operating income. Income taxes (40%). (000's) 000's $ Net income 9. The payback period of the investment in equipment is approximately a. 3.0 years. b. 4.0 years. (con il nuovo net income devo vedere quanti anni ci metto ad arrivare a 24 000! Attenzione: devo togliere anche le tasse perché sono outflows, l'ammortamento no perché nor corrisponde ad un uscita di cassa) c. 4.8 years. d. 8.0 years.

Antonio, Inc., has invested in new production equipment at a cost of $24,000. The equipment has an estimated useful life of eight years. The estimated annual sales and operating expense related to the equipment are as follows: Annual sales Labor costs. Depreciation of equipment. Operating income. Income taxes (40%). (000's) 000's $ Net income 9. The payback period of the investment in equipment is approximately a. 3.0 years. b. 4.0 years. (con il nuovo net income devo vedere quanti anni ci metto ad arrivare a 24 000! Attenzione: devo togliere anche le tasse perché sono outflows, l'ammortamento no perché nor corrisponde ad un uscita di cassa) c. 4.8 years. d. 8.0 years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 12P

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