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Hayden Company is considering the acquisition of a machine that costs $427,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $88,000, and annual operating income of $74,800. The estimated cash payback period for the machine is (rounc to one decimal place) O 6.9 years b. 1.2 years Oc. 4.9 years d. 5.7 years

Hayden Company is considering the acquisition of a machine that costs $427,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $88,000, and annual operating income of $74,800. The estimated cash payback period for the machine is (rounc to one decimal place) O 6.9 years b. 1.2 years Oc. 4.9 years d. 5.7 years

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Hayden Company is considering the acquisition of a machine that costs $427,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $88,000, and annual operating income of $74,800. The estimated cash payback period for the machine is (round to one decimal place) O 6.9 years b. 1.2 years c. 4.9 years d. 5.7 years
Transcribed Image Text:Hayden Company is considering the acquisition of a machine that costs $427,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $88,000, and annual operating income of $74,800. The estimated cash payback period for the machine is (round to one decimal place) O 6.9 years b. 1.2 years c. 4.9 years d. 5.7 years
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