Warren Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $47600. The equipment will have an initial cost of $170000 and have an 8 year life and no salvage value of the equipment. What is the payback period? Round your answer 2 decimals

Warren Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $47600. The equipment will have an initial cost of $170000 and have an 8 year life and no salvage value of the equipment. What is the payback period? Round your answer 2 decimals

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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