Quary Co. is considering an investment in machinery with the following information. Compute the investments (a) Annual
Question:
Quary Co. is considering an investment in machinery with the following information. Compute the investment’s
(a) Annual income and annual net cash flow and
(b) Payback period.
Transcribed Image Text:
Initial investment. $200,000 Materials, labor, and overhead (except depreciation). $45,000 .... . ... .. Useful life .. 9 years Depreciation-Machinery.... 20,000 Salvage value... Expected sales per year..... $20,000 Selling, general, and administrative expenses.. 5,000 10,000 units Selling price per unit $10
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a b Annual Amounts Sales of new product 10000 x 10 Ex...View the full answer
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