1)

Assume that a companyr is considering purchasing a new piece of equipment for $240,000 that would have a useful life of10 years and a salvage value of $24,000, The new equipment would cost $20000 per year to operate and it would replace an old piece of equipment that costs $60,000 per year to operate, The old equipment currently being used could be sold for a salvage value of $40,000, The payback period for the new equipment is closest to: Multiple Choice O 10.9 years. 5.4 years. 5 years. O O 5.2 years. O Which of the following four options is true? Does Consider the Time Value Does Consider Choices Capital Budgeting Method of Money Cash Flows Option 1 Payback method Yes No Option 2 Net present value method No Yes Option 3 Internal rate of return method Yes Yes Option 4 Simple rate of return Yes No Multiple Choice O Option 1 O Option 2 O Option 3 O Option 4