Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are: Expected Expected Annual Annual Cash Year Cash Inflows Outflows 1 $38000 $16000 61000 25000 75000 30000 4 50000 40000
Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are: Expected Expected Annual Annual Cash Year Cash Inflows Outflows 1 $38000 $16000 61000 25000 75000 30000 4 50000 40000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4CMA: Foster Manufacturing is analyzing a capital investment project that is forecast to produce the...
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![Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are:
Expected
Expected
Annual
Annual
Cash Inflows
Cash
Outflows
Year
1
$38000
$16000
2
61000
25000
3
75000
30000
50000
40000
The cash payback period is
O 3.50 years.
O 2.20 years.
О 3.12 years.
O 3.56 years.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9987dce4-2f78-4f8c-8c7b-fb98547f5c15%2F76edf583-29e2-46cf-99cd-4b5552600ede%2Fx4lunmg_processed.png&w=3840&q=75)
Transcribed Image Text:Oriole Inc. is contemplating a capital investment of $108000. The cash flows over the project's four years are:
Expected
Expected
Annual
Annual
Cash Inflows
Cash
Outflows
Year
1
$38000
$16000
2
61000
25000
3
75000
30000
50000
40000
The cash payback period is
O 3.50 years.
O 2.20 years.
О 3.12 years.
O 3.56 years.
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