Wildhorse Company is considering the purchase of a new machine. The invoice price of the machine is $72,020, freight charges are estimated to be $4,940, and installation costs are expected to be $6,500. The annual cost savings are expected to be $26,000 for 10 years. Calculate the cash payback period. (Round answer to 2 decimal places, e.g. 15.25.) Cash payback period years
Wildhorse Company is considering the purchase of a new machine. The invoice price of the machine is $72,020, freight charges are estimated to be $4,940, and installation costs are expected to be $6,500. The annual cost savings are expected to be $26,000 for 10 years. Calculate the cash payback period. (Round answer to 2 decimal places, e.g. 15.25.) Cash payback period years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wildhorse Company is considering the purchase of a new machine. The invoice price of the machine is $72,020, freight charges are
estimated to be $4,940, and installation costs are expected to be $6,500. The annual cost savings are expected to be $26,000 for 10
years. Calculate the cash payback period. (Round answer to 2 decimal places, e.g. 15.25.)
Cash payback period
years
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