Vandezande Inc. is considering the acquisition of a new machine that costs $428,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are (gnore income taxes) Incremental Net Cash Year 1 Year 2 Year 3 Year 4 Year 5 Incremental Net Operating Income $ $ $ $ $ 66,000 72,000 83,000 46,000 88,000 Multiple Choice Assume cash flows occur uniformly throughout a year except for the initial investment The payback period of this investment is closest to: (Round your answer to 1 decimal place.) 2.6 years Flows $ 150,000 $ 152.000 $165.000 2.8 years $ 148,000 $ 150.000
Vandezande Inc. is considering the acquisition of a new machine that costs $428,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are (gnore income taxes) Incremental Net Cash Year 1 Year 2 Year 3 Year 4 Year 5 Incremental Net Operating Income $ $ $ $ $ 66,000 72,000 83,000 46,000 88,000 Multiple Choice Assume cash flows occur uniformly throughout a year except for the initial investment The payback period of this investment is closest to: (Round your answer to 1 decimal place.) 2.6 years Flows $ 150,000 $ 152.000 $165.000 2.8 years $ 148,000 $ 150.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Q.11.
Subject :- Account
Transcribed Image Text:Multiple Choice
O
✔
26 years
2.8 years
2.9 years
210 years
Transcribed Image Text:Vandezande Inc. is considering the acquisition of a new machine that costs $428,000 and has a useful life of 5 years with no salvage value. The incremental net
operating income and incremental net cash flows that would be produced by the machine are (gnore income taxes)
Incremental Net Cash
Year 1
Year 2
Year 3
Year 4
Year 5
Incremental Net
Operating Income
$
$
$
66,000
72,000
83,000
$
46,000
$ 88,000
Multiple Choice
Assume cash flows occur uniformly throughout a year except for the initial investment
The payback period of this investment is closest to: (Round your answer to 1 decimal place.)
2.6 years
Flows
$ 150,000
$ 152.000
$ 165.000
$
148,000
$
150.000
2.8 years
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