Vandezande Incorporated is considering the acquisition of a new machine that costs $461,000 and has a useful life of 5 years with no salvage value. Thencremental net operating income and incremental net cash flows that would be produced by the machine are (ignore income taxes.):IncrementalNet OperatingIncome$ 69,000$ 75,000IncrementalNet CashFlows$ 149,000$ 150,000$ 181,000$ 151,000$ 153,000Year 1Year 2Year 3Year 4Year 5Assume 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.)$ 86,000$ 49,000$ 91,000

Payback is a capital budgeting tool which is used to find the time required to recover the invested…

Vandezande Incorporated is considering the acquisition of a new machine that costs $461,000 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 (Ignore income taxes.): Year 1 Year 2 Year 3 Year 4 Year 5 Incremental Net Operating Income $ 69,000 $ 75,000 $ 86,000 $ 49,000 $ 91,000 Incremental Net Cash Flows $ 149,000 $ 150,000 $ 181,000 $ 151,000 $ 153,000 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.)

Vandezande Incorporated is considering the acquisition of a new machine that costs $461,000 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 (Ignore income taxes.): Year 1 Year 2 Year 3 Year 4 Year 5 Incremental Net Operating Income $ 69,000 $ 75,000 $ 86,000 $ 49,000 $ 91,000 Incremental Net Cash Flows $ 149,000 $ 150,000 $ 181,000 $ 151,000 $ 153,000 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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