Hayden Company is considering the acquisition of a machine that costs $389,000. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $86,000, and annual operating income of $73,100. What is the estimated cash payback period for the machine (round to one decimal points)? a.1.2 years b.5.3 years c.4.5 years d.6.5 years
Hayden Company is considering the acquisition of a machine that costs $389,000. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $86,000, and annual operating income of $73,100. What is the estimated cash payback period for the machine (round to one decimal points)? a.1.2 years b.5.3 years c.4.5 years d.6.5 years
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 3P
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Hayden Company is considering the acquisition of a machine that costs $389,000. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $86,000, and annual operating income of $73,100. What is the estimated cash payback period for the machine (round to one decimal points)?
a.1.2 years
b.5.3 years
c.4.5 years
d.6.5 years
The expected average
a.10.00%
b.1.00%
c.20.00%
d.40.00%
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