Question
A piece of equipment costs $38,000, and is expected to generate $8,200 of annual cash revenues and $1,800 of annual cash expenses. The disposal value
A piece of equipment costs $38,000, and is expected to generate $8,200 of annual cash revenues and $1,800 of annual cash expenses. The disposal value at the end of the estimated 8-year life is $2,000. Ignoring income taxes, the payback period is:
| 8.17 years. | |
| 5.94 years. | |
| 4.63 years. | |
| None of these. | |
| 5.63 years. |
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Sm Auditing Integrated Appr Review Copy
Authors: ARENS LO, EBBECKE
7th Edition
0135914396, 978-0135914397
