Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $ 130,975. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $ 80,300, and annual cash outflows would increase by $ 40,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period years.

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $ 130,975. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $ 80,300, and annual cash outflows would increase by $ 40,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period years.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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