Young Corporation is considering purchasing equipment that costs $50,000 and is expected to provide the following cash inflows over its five-year useful life: Year Cash Inflow $12,000 $16,000 $18,000 $ 4,000 $ 3,000 1 2 What is the payback period of this investment project? (Rounded to the nearest year.)

Young Corporation is considering purchasing equipment that costs $50,000 and is expected to provide the following cash inflows over its five-year useful life: Year Cash Inflow $12,000 $16,000 $18,000 $ 4,000 $ 3,000 1 2 What is the payback period of this investment project? (Rounded to the nearest year.)

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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Young Corporation is considering purchasing equipment that costs $50,000 and is expected to provide the following cash inflows over
its five-year useful life:
Year
Cash Inflow
$12,000
$16,000
$18,000
$ 4,000
$ 3,000
1
4
What is the payback period of this investment project? (Rounded to the nearest year.)

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