A company is considering purchasing a machine that costs $480000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $190000 and annual operating expenses exclusive of depreciation expense are expected to be $34000. The straight-line method of depreciation would be used. The cash payback period on the machine is O 4.1 years. O 8.0 years. O 3.1 years. O 2.0 years.
A company is considering purchasing a machine that costs $480000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $190000 and annual operating expenses exclusive of depreciation expense are expected to be $34000. The straight-line method of depreciation would be used. The cash payback period on the machine is O 4.1 years. O 8.0 years. O 3.1 years. O 2.0 years.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Transcribed Image Text:A company is considering purchasing a machine that costs $480000 and is estimated to have no salvage value at the end of its 8-year
useful life. If the machine is purchased, annual revenues are expected to be $190000 and annual operating expenses exclusive of
depreciation expense are expected to be $34000. The straight-line method of depreciation would be used. The cash payback period on
the machine is
O 4.1 years.
O 8.0 years.
O 3.1 years.
O 2.0 years.
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