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estion 5 Abba, Inc is considering the purchase of some new equipment that costs $240700. The new equipment is expected to increase revenues by $96000 annually. Cash expenses are expected to be $58400 and depreciation expense is $13500. The payback on this equipment is years. Enter your answer as a whole number rounded to 2 decimal places.

estion 5 Abba, Inc is considering the purchase of some new equipment that costs $240700. The new equipment is expected to increase revenues by $96000 annually. Cash expenses are expected to be $58400 and depreciation expense is $13500. The payback on this equipment is years. Enter your answer as a whole number rounded to 2 decimal places.

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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Question 5 Abba, Inc is considering the purchase of some new equipment that costs $240700. The new equipment is expected to increase revenues by $96000 annually. Cash expenses are expected to be $58400 and depreciation expense is $13500. The payback on this equipment is years. Enter your answer as a whole number rounded to 2 decimal places.
Transcribed Image Text:Question 5 Abba, Inc is considering the purchase of some new equipment that costs $240700. The new equipment is expected to increase revenues by $96000 annually. Cash expenses are expected to be $58400 and depreciation expense is $13500. The payback on this equipment is years. Enter your answer as a whole number rounded to 2 decimal places.
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