5. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It hasa salvage value of $3000 at the end of 10 years. If the MARRIS 5 percent, what is the payback periodof this project?

given, initial cost = $28000 n = 10 annual return = $5000 salvage value = $3000 r=5%

Margaret has a project with a $28 000 first cost that returms $5000 peryea overits 10-yea life. It has a salvage value of$3000 at the end of 10 years. If the MARRIS 5 percent, whatis the payback period of this project?

Margaret has a project with a $28 000 first cost that returms $5000 peryea overits 10-yea life. It has a salvage value of$3000 at the end of 10 years. If the MARRIS 5 percent, whatis the payback period of this project?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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5. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has
a salvage value of $3000 at the end of 10 years. If the MARRIS 5 percent, what is the payback period
of this project?

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