Answered: e. 3.9 years. c. 4.4 years. d. 2.3…

Business

Accounting

e. 3.9 years. c. 4.4 years. d. 2.3 years. а. 0.2 years. b. 5.0 years.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter9: Payroll, Estimated Payments, And Retirement Plans

Section: Chapter Questions

Problem 6MCQ: Estimated payments for individual taxpayers are due on the following dates: Twice a year on April 15...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

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;

e. 3.9 years.
c. 4.4 years.
d. 2.3 years.
а.
0.2 years.
b. 5.0 years.

Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

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