MNO company is evaluating a proposal for purchase of equipment which will cost $180,000. The cash inflows from the use of equipment is given below: Year Cash flow S60,000 $40,000 S70,000 $125,000 S35,000 1 2 4 Payback period for the proposal is: а. 3 years b. 2 years с. 4 years d. 3.08 years

MNO company is evaluating a proposal for purchase of equipment which will cost $180,000. The cash inflows from the use of equipment is given below: Year Cash flow S60,000 $40,000 S70,000 $125,000 S35,000 1 2 4 Payback period for the proposal is: а. 3 years b. 2 years с. 4 years d. 3.08 years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

MNO company is evaluating a proposal for purchase of equipment which will cost
$180,000. The cash inflows from the use of equipment is given below:
Year
Cash flow
$60,000
$40,000
S70,000
$125,000
$35,000
1
3
4
Payback period for the proposal is:
а. 3 years
b. 2 years
c. 4 years
d. 3.08 years

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