Determine the cash payback period for both location proposals. Location 1 years Location 2 years
Determine the cash payback period for both location proposals. Location 1 years Location 2 years
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 5E: Cash payback period for a service company Janes Clothing Inc. is evaluating two capital investment...
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Cash payback period for a Service Company
Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $180,000 and each with an eight-year life and expected total net
Year 1 | $81,000 | Year 5 | $43,000 | |
Year 2 | 61,000 | Year 6 | 32,000 | |
Year 3 | 38,000 | Year 7 | 25,000 | |
Year 4 | 58,000 | Year 8 | 22,000 |
Determine the cash payback period for both location proposals.
Location 1 | years |
Location 2 | years |
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