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Newport Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $266,000. The equipment will have an initial cost of $1,064,000 and a 8 year useful life with no salvage value. What is the payback period? Multiple Choice O4.00 years 8.00 years O2.00 years O2.67 years

Newport Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $266,000. The equipment will have an initial cost of $1,064,000 and a 8 year useful life with no salvage value. What is the payback period? Multiple Choice O4.00 years 8.00 years O2.00 years O2.67 years

FINANCIAL ACCOUNTING
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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Subject: accounting 

Newport Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $266,000. The equipment will have an initial cost of $1,064,000 and a 8 year useful life with no salvage value. What is the payback period? Multiple Choice O4.00 years O 8.00 years O2.00 years 2.67 years
Transcribed Image Text:Newport Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $266,000. The equipment will have an initial cost of $1,064,000 and a 8 year useful life with no salvage value. What is the payback period? Multiple Choice O4.00 years O 8.00 years O2.00 years 2.67 years
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