Rihanna Company is considering purchasing new equipment for $333,700. It is expected that the equipment will produce net annual cash flows of $47,000 over its 10-year useful life. Annual depreciation will be $33,370. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period 12700 years
Rihanna Company is considering purchasing new equipment for $333,700. It is expected that the equipment will produce net annual cash flows of $47,000 over its 10-year useful life. Annual depreciation will be $33,370. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period 12700 years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Rihanna Company is considering purchasing new equipment for $333,700. It is expected that the equipment will produce net annual
cash flows of $47,000 over its 10-year useful life. Annual depreciation will be $33,370. Compute the cash payback period. (Round
answer to 1 decimal place, e.g. 10.5.)
Cash payback period
12700
years
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