An anticipated purchase of equipment for $600,000, with a useful life of 8 years and no residual

Question:

An anticipated purchase of equipment for $600,000, with a useful life of 8 years and no residual value, is expected to yield the following annual net incomes and net cash flows:

B 14 21 39 47 68 7 22 44 53 64 3 16 FREE 60 | 61 1 46 75 29 | 42 13 18 | 31 59 71

What is the cash payback period?
a. 5 years
b. 4 years
c. 3 year
d. 6 years

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

See More Books

Question Posted: Feb 01, 2018 07:36 AM

See More Questions

On December 1, 20X1, Micro World, Inc., entered into a 120-day forward contract to purchase 100,000 Australian dollars (A$). Micro World's fiscal year ends on December 31. The direct exchange rates...
Mega Company believes the price of oil will increase in the coming months. Therefore, it decides to purchase call options on oil as a price-risk-hedging device to hedge the expected increase in...
Disclosures Required in Various Situations Ace Inc. produces electronic components for sale to manufacturers of radios, television sets, and digital sound systems. In connection with her examination...
Evaluate the Branding and Positioning Strategy of Cineplex and suggest future directions to pursue to make the business model more solid, more profitable, and less prone to competitive matching or...
Cable BC exerts force F on the top of the flagpole. Determine the projection of this force along the z axis of the pole. Given: F = 28 N a = 12 m b = 6 m c = 4 m B F)
A newborn baby's brain grows rapidly. In fact, it has been found to increase in mass by about 1.6 mg per minute. (a) How much does the brain's weight increase in one day? (b) How much time does it...
Make a stem-and-leaf plot of the data set. Use one line per stem.
Savage Motors sells and leases commercial automobiles, vans, and trucks to customers in southern California. Most of the company's administrative staff works in the main office. The company has been...
In December 2020, the accountant for Eagle Corp. , a public company, noted that the following errors had been made by the bookkeeper: Sales for 2019 included $16,500 that had been received in cash...
A factory produces office chairs. According to the past data, the weekly demand has the following probability distribution. The selling price per chair is $120. In addition, the historical data...
A BINGO card consists of a square containing 25 smaller squares, as shown in the figure. Five numbers from 1 to 15 are placed under the letter B, five numbers from 16 to 30 are placed under the...
An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is...
Solve the inequality symbolically. Express the solution set in set-builder or interval notation. -3 (2-4) 2(1-22)
The balances of selected accounts of Casper Company on February 28, 20X1, were as follows: Sales $250,000 and Sales Returns and Allowances $4,000. The firm's net sales are subject to an 7 percent...
1. Draw and label force diagrams for the physics book and for the calculator. Add equality marks showing any equalities between force diagrams. Circle and label any Newton's third law pairs. (6 pts)...
Consider the Lincoln Tunnel, which was built in 1939 under the Hudson River in New York. Assume the tunnel to be empty with perfectly conducting walls and rectangular cross section with width 6.55 m...
Examine a well-known principal-agent contract, the sale of your home by a licensed realtor. You will use the following data to analyze this case. Your home is the typical home, approximately 1,875 sq...
i) Generate a third degree polynomial in x and y named g(x, y) that is based on your mobile number (Note: In case there is a 0 in one of the digits replace it by 3). Suppose your mobile number is...
Use the diagram to determine if the statement is true or false. W Q R J NL M P X
Write a declaration for each of the following: a. A line that extends from point (60, 100) to point (30, 90) b. A rectangle that is 20 pixels wide, 100 pixels high, and has its upper-left corner at...
How fast must an electron move to have a kinetic energy equal to the photon energy of sodium light at wavelength 590 nm?
An ultraviolet lamp emits light of wavelength 400 nm at the rate of 400 W. An infrared lamp emits light of wavelength 700nm, also at the rate of 400 W. (a) Which lamp emits photons at the greater...
A satellite in Earth orbit maintains a panel of solar cells of area 2.60 m2 perpendicular to the direction of the Sun's light rays. The intensity of the light at the panel is 1.39kW/m2. (a) At what...
On January 1, 2018, Brooks Corporation exchanged $1,259,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal...
1. Determine the value of the right to use asset and lease liability at commencement of the lease.
Problem 22-1 The management of Sunland Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Sunland changed...

An anticipated purchase of equipment for $600,000, with a useful life of 8 years and no residual

Question:

B 14 21 39 47 68 7 22 44 53 64 3 16 FREE 60 | 61 1 46 75 29 | 42 13 18 | 31 59 71

Step by Step Answer:

d 6 years Year Net cash flow ...View the full answer

Intermediate accounting

Students also viewed these Managerial Accounting questions