A company is considering the purchase of equipment for $270,000. Projected annual cash inflow from this equipment

Question:

A company is considering the purchase of equipment for $270,000. Projected annual cash inflow from this equipment is $61,200 per year. The payback period is:

a. 0.2 years

b. 5.0 years

c. 4.4 years

d. 2.3 years

e. 3.9 years

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

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Accounting Principles Volume 2

ISBN: 9780077716660

21st Edition

Authors: John Wild, Ken Shaw, Barbara Chiappetta

See More Books

Question Posted: Jul 20, 2024 04:02 AM

See More Questions

Cash account balance During the month, Bavarian Auto Co. received $489,650 in cash and paid out $413,250 in cash. a. Does this information indicate that Bavarian Auto Co. had net income of $76,400...
Most university classes have prerequisites, classes that must be completed first before taking more advanced classes. How has the knowledge gained in earlier courses affected the way organization,...
Craig Jennings owns a consumer device company called Holcomb Technologies. Holcomb manufactures devices locally in South Florida. Currently, Craig gets the components from domestic suppliers. He...
It happens all too often. As a market researcher, you slave away for countless hours in pursuit of insightful data but, to your shock, your research report flops and your data are dead in the water....
Match the following terms and definitions. a. operational database b. data warehouse c. database administrator d. intersection table e. composite primary key f. normalization g. database integrity 1....
For the reaction 2 C6HsCOOH(s) + 13 02(g) 12 CO2 (g) + 6 H20 (g), -Uo= -772.7 k) mol-1 at 298 K. Calculate -1Ho.
How can I reduce the cost of my flood insurance?
The Heinrich Tire Company recalled a tire in its subcompact line in December 2018. Costs associated with the recall were originally thought to approximate $50 million. Now, though, while management...
The following information applies to the questions displayed below.j Cheetah Copy purchased a new copy machine. The new machine cost $134,000 Including Installation. The company estimates the...
Acompany buys a machine for $180,000 that has an expected life of nine years and no salvage value. The company expects an annual net income (after taxes of 30%) of $8,550. What is the accounting rate...
A company has already incurred a $1,000 cost in partially producing its four products. Their selling prices when partially and fully processed follow with additional costs necessary to finish these...
For the following exercises, find the inverse of the matrix. 12 -1 -4 9 3 -3 -67 2 2]
I would appreciate freehand sketches for the top, side views, and front views. D C 6 50 B 2.75 A a 5 4 3 2 1 .45 UNLESS OTHERWISE SPECIFIED: DIMENSIONS ARE IN MILLIMETERS SURFACE FINISH: TOLERANCES:...
The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Sales salaries Deductions: $180,000 Income tax withheld $65,296...
You have just been hired as the chief executive officer (CEO) in a medium-sized organization. The organization is not suffering financially, but neither is it doing as well as it could do. This is...
The following is the selling price and cost information about three joint products: X Y Z Anticipated production 1 2 , 0 0 0 lbs . 8 , 0 0 0 lbs . 7 , 0 0 0 lbs . Selling price / lb . at split - off...
calculate the maximum bending compressive stress of the following section under NEGATIVE bending moment of 216KN.m. 216mm 416mm 316mm 115mm
A force P is applied to a bent rod which is supported by a roller and a pin and bracket. For each of the three cases shown, determine the internal forces at point J. D. Fig. P7.21
In the operation of an automated production line with storage buffers, what does it mean if a buffer is nearly always empty or nearly always full?
The cost of goods manufactured is transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account. True or False When goods are sold to a customer: A. Costs are...
rental cost and buying cost
On January 1, 2020, Riverbed Corp. acquires $324,000 of Spider Products Inc. 8% bonds at a price of $300,247. The interest is payable each December 31, and the bonds mature on December 31, 2022. The...

A company is considering the purchase of equipment for $270,000. Projected annual cash inflow from this equipment

Question:

Step by Step Answer:

Fundamental Accounting Principles Volume 2

Students also viewed these Business questions