Question
A company is considering the purchase of a new piece of equipment for $92,000. It is expected to produce the following net cash flows. The
A company is considering the purchase of a new piece of equipment for $92,000. It is expected to produce the following net cash flows. The payback period is:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Net cash flows | $ 37,000 | $ 31,000 | $ 19,000 | $ 13,000 | $ 7,000 |
Multiple Choice
-
2.97 years.
-
4.38 years.
-
3.38 years.
-
2.49 years.
-
3.33 years.
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A Guide To Effective Internal Management System Audits Implementing Internal Audits As A Risk Management Tool
Authors: IT Governance Publishing
1st Edition
1849285594, 978-1849285599
