Kyler Co. is considering acquiring a manufacturing plant. The purchase price is $1,250,000. The owners believe the plant will generate net cash inflows of $307,000 annually. It will have to be replaced in seven years. Use the payback method to determine whether Kyler should purchase this plant. Round to one decimal place. Select the formula, then enter the amounts to calculate the payback period for the plant. (Round payback to one decimal place, X.X.) Expected annual net cash inflow Payback The payback occurs ▼ the plant must be replaced, so the payback method = = years purchasing the plant.
Kyler Co. is considering acquiring a manufacturing plant. The purchase price is $1,250,000. The owners believe the plant will generate net cash inflows of $307,000 annually. It will have to be replaced in seven years. Use the payback method to determine whether Kyler should purchase this plant. Round to one decimal place. Select the formula, then enter the amounts to calculate the payback period for the plant. (Round payback to one decimal place, X.X.) Expected annual net cash inflow Payback The payback occurs ▼ the plant must be replaced, so the payback method = = years purchasing the plant.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Kyler Co. is considering acquiring a manufacturing plant. The purchase price is $1,250,000. The owners believe the plant will generate net cash inflows of $307,000 annually. It will have to be
replaced in seven years. Use the payback method to determine whether Kyler should purchase this plant. Round to one decimal place.
Select the formula, then enter the amounts to calculate the payback period for the plant. (Round payback to one decimal place, X.X.)
Expected annual net cash inflow
Payback
The payback occurs
+
the plant must be replaced, so the payback method
=
=
years
purchasing the plant.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c8ac31f-1ca3-4ac0-a94f-53332806e1f4%2F64d7567d-9cf7-4dc3-9352-53d03b21e69b%2Fp14ow2o_processed.png&w=3840&q=75)
Transcribed Image Text:Kyler Co. is considering acquiring a manufacturing plant. The purchase price is $1,250,000. The owners believe the plant will generate net cash inflows of $307,000 annually. It will have to be
replaced in seven years. Use the payback method to determine whether Kyler should purchase this plant. Round to one decimal place.
Select the formula, then enter the amounts to calculate the payback period for the plant. (Round payback to one decimal place, X.X.)
Expected annual net cash inflow
Payback
The payback occurs
+
the plant must be replaced, so the payback method
=
=
years
purchasing the plant.
![Kyler Co. is considering acquiring a manufacturing plant. The purchase price is $1,250,000. The owners believe the plant will generate net cash inflows of $307,000 annually. It will have to be
replaced in seven years. Use the payback method to determine whether Kyler should purchase this plant. Round to one decimal place.
Select the formula, then enter the amounts to calculate the payback period for the plant. (Round payback to one decimal place, X.X.)
Expected annual net cash inflow
Payback
The payback occurs
+
the plant must be replaced, so the payback method
=
=
years
purchasing the plant.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c8ac31f-1ca3-4ac0-a94f-53332806e1f4%2F64d7567d-9cf7-4dc3-9352-53d03b21e69b%2Fze3lly_processed.png&w=3840&q=75)
Transcribed Image Text:Kyler Co. is considering acquiring a manufacturing plant. The purchase price is $1,250,000. The owners believe the plant will generate net cash inflows of $307,000 annually. It will have to be
replaced in seven years. Use the payback method to determine whether Kyler should purchase this plant. Round to one decimal place.
Select the formula, then enter the amounts to calculate the payback period for the plant. (Round payback to one decimal place, X.X.)
Expected annual net cash inflow
Payback
The payback occurs
+
the plant must be replaced, so the payback method
=
=
years
purchasing the plant.
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