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Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $ 130,975. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $ 80,300, and annual cash outflows would increase by $ 40,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period years.

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $ 130,975. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $ 80,300, and annual cash outflows would increase by $ 40,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period years.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 10E: Roberts Company is considering an investment in equipment that is capable of producing more...
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Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $ 130,975. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $ 80,300, and annual cash outflows would increase by $ 40,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period years.
Transcribed Image Text:Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $ 130,975. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $ 80,300, and annual cash outflows would increase by $ 40,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period years.
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