Incremental Net Incresental Operating Income Net Cash Flows $ 70, 000 $ 76,000 $ 87,000 $ 50,000 $ 92,000 $ 152,000 $ 155,000 $ 165,000 $ 152, 000 $ 154,000 sh flows occur uniformly throughout a year except for the initial investment. ck period of this investment is closest to: (Round your answer to 1 decimal place.) pie Cholce ) 5.0 years 21 years 4.3 years 27 years

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A company is considering the acquisition of o new machine that costs $429,000 and has a useful life of 5 years with no solvage velue. The incremental net operating incomne and incremental net cosh flows that would be produced by the mochine oare (Ignore income taxes.)
Incremental Net
Incremental
Operating Income Net Cash Flows
$ 70,000
$ 76,000
$ 87,000
$ 50,000
$ 92,000
Year 1
$ 152,080
Year 2
$165,000
$ 152,000
$ 154,000
Year 3
Year 4
Year 5
Assume cash flows occur uniformly throughout a year except for the initial investment.
The payback period of this investment is closest to: (Round your answer to 1 decimal place.)
Multipie Cholce
O 5.0 years
O 21years
4.3 years
27 years
Transcribed Image Text:Saved A company is considering the acquisition of o new machine that costs $429,000 and has a useful life of 5 years with no solvage velue. The incremental net operating incomne and incremental net cosh flows that would be produced by the mochine oare (Ignore income taxes.) Incremental Net Incremental Operating Income Net Cash Flows $ 70,000 $ 76,000 $ 87,000 $ 50,000 $ 92,000 Year 1 $ 152,080 Year 2 $165,000 $ 152,000 $ 154,000 Year 3 Year 4 Year 5 Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period of this investment is closest to: (Round your answer to 1 decimal place.) Multipie Cholce O 5.0 years O 21years 4.3 years 27 years
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