If an asset costs 240,000 and is expected to have a 40,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of 40,000 each year, what is the cash payback period?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3EA: If a copy center is considering the purchase of a new copy machine with an initial investment cost...
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Provide correct answer this question general accounting

If an asset costs 240,000 and is expected to have a
40,000 salvage value at the end of its ten-year life, and
generates annual net cash inflows of 40,000 each year,
what is the cash payback period?
Transcribed Image Text:If an asset costs 240,000 and is expected to have a 40,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of 40,000 each year, what is the cash payback period?
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ISBN:
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