Warren Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $47600. The equipment will have an initial cost of $170000 and have an 8 year life and no salvage value of the equipment. What is the payback period? Round your answer 2 decimals
Warren Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $47600. The equipment will have an initial cost of $170000 and have an 8 year life and no salvage value of the equipment. What is the payback period? Round your answer 2 decimals
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 2E: Average rate of returncost savings Maui Fabricators Inc. is considering an investment in equipment...
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