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company is considering a project with t Initial investment: $124,000 Annual cash flows: $78,000 per year f Equipment refurbishment costs (at the Salvage value of equipment (at the en hat is the Payback Period (in years) for se the present values tables above for any culations. Round your final answer to the

company is considering a project with t Initial investment: $124,000 Annual cash flows: $78,000 per year f Equipment refurbishment costs (at the Salvage value of equipment (at the en hat is the Payback Period (in years) for se the present values tables above for any culations. Round your final answer to the

FINANCIAL ACCOUNTING
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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A company is considering a project with the following cash flows: ■ Initial investment: $124,000 ▪ Annual cash flows: $78,000 per year for 8 years ▪ Equipment refurbishment costs (at the end of 6 years): $26,000 Salvage value of equipment (at the end of 8 years): $7,000 What is the Payback Period (in years) for this project? (Round to two decimal places.) (Use the present values tables above for any present value calculations. Don't round intermediate calculations. Round your final answer to the nearest dollar.) ■
Transcribed Image Text:A company is considering a project with the following cash flows: ■ Initial investment: $124,000 ▪ Annual cash flows: $78,000 per year for 8 years ▪ Equipment refurbishment costs (at the end of 6 years): $26,000 Salvage value of equipment (at the end of 8 years): $7,000 What is the Payback Period (in years) for this project? (Round to two decimal places.) (Use the present values tables above for any present value calculations. Don't round intermediate calculations. Round your final answer to the nearest dollar.) ■
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