Required information [The following information applies to the questions displayed below.] Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 2. Determine Project Y's payback period. Project Y Numerator: Payback Period 1 1 Denominator: = = Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 Payback period

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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gnment i
!
Required information
[The following information applies to the questions displayed below.]
Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. The project yields
the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use
appropriate factor(s) from the tables provided.)
2
Annual Amounts
Sales of new product
Expenses
Materials, labor, and overhead (except depreciation)
Depreciation-Machinery
Selling, general, and administrative expenses
2. Determine Project Y's payback period.
@
Income
Project Y
F2
W
3
Numerator:
80
F3
$
4
Payback Period
1
1
F4
C
Denominator:
%
5
< Prev
F5
H
=
=
Saved
^
6
Project Y
$ 350,000
157,500
87,500
49,000
$ 56,000
Payback period
2 3 4
MacBook Air
of 4
c
F6
&
7
0
F7
Next >
8
DII
F8
(
9
F9
Transcribed Image Text:gnment i ! Required information [The following information applies to the questions displayed below.] Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) 2 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses 2. Determine Project Y's payback period. @ Income Project Y F2 W 3 Numerator: 80 F3 $ 4 Payback Period 1 1 F4 C Denominator: % 5 < Prev F5 H = = Saved ^ 6 Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 Payback period 2 3 4 MacBook Air of 4 c F6 & 7 0 F7 Next > 8 DII F8 ( 9 F9
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