What is the payback period of this financial accounting question? Horizon Manufacturing is considering purchasing new machinery thatwill cost $3,500 at time = 0. The after-tax cash flows from the machineryare expected to be $500 each year for 10 years. What is the paybackperiod? (Round your answer to two decimal points)

The payback period is the amount of time it takes for an investment to recover its initial cost…

Answered: Horizon Manufacturing is considering…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...

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Horizon Manufacturing is considering purchasing new machinery that will cost $3,500 at time = 0. The after-tax cash flows from the machinery are expected to be $500 each year for 10 years. What is the payback period? (Round your answer to two decimal points)