An anticipated purchase of equipment for $520,000, with a useful life of 8 years and no residual value, is expected to yield the following annual netincomes and net cash flows:Year12345678Net Income$60,00050,00050,00040,00040,00040,00040,00040,000What is the cash payback period?Oa.a. 6 yearsOb. 3 yearsOc. 5 yearsOd. 4 yearsNet Cash Flow$120,000110,000110,000100,00080,00080,00060,00060,000

The payback period is the time period taken by business to cover the initial or original cash…

An anticipated purchase of equipment for $520,000, with a useful life of 8 years and no residual value, is expected to yield the following annual net incomes and net cash flows: Year 1 2 3 4 5 150 6 7 8 Net Income $60,000 50,000 50,000 40,000 40,000 40,000 40,000 40,000 What is the cash payback period? Oa. 6 years Ob. 3 years Net Cash Flow $120,000 110,000 110,000 100,000 80,000 80,000 60,000 60,000

An anticipated purchase of equipment for $520,000, with a useful life of 8 years and no residual value, is expected to yield the following annual net incomes and net cash flows: Year 1 2 3 4 5 150 6 7 8 Net Income $60,000 50,000 50,000 40,000 40,000 40,000 40,000 40,000 What is the cash payback period? Oa. 6 years Ob. 3 years Net Cash Flow $120,000 110,000 110,000 100,000 80,000 80,000 60,000 60,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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