A company is considering the purchase of equipment for $270,000. Projected annual cash inflow from this equipment is $61,200 per year. The payback period is a. 0.2 years. c. 4.4 years. e. 3.9 years. b. 5.0 years. d. 2.3 years.
A company is considering the purchase of equipment for $270,000. Projected annual cash inflow from this equipment is $61,200 per year. The payback period is a. 0.2 years. c. 4.4 years. e. 3.9 years. b. 5.0 years. d. 2.3 years.
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 19E
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Question
A company is considering the purchase of equipment for
$270,000. Projected annual
is $61,200 per year. The payback period is
a. 0.2 years. c. 4.4 years. e. 3.9 years.
b. 5.0 years. d. 2.3 years.
Expert Solution
Step 1
Answer:
Option c
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