Question
can I please have some help with this question. . Calculate the Payback period for the equipment it needs to show a number of years
can I please have some help with this question.
. Calculate the Payback period for the equipment it needs to show a number of years to one dicimal point.
. Show your workings in the space provided below:
b. Acquisition of new equipment The new equipment must pay back FAB Plastics within 4 years. The information in Table 2 below outlines the payback result, which will be included in the acquisition proposal. Table 3 Payback result Calculation Result Cost $4,100,000 Residual value $0 Useful life 5 years Depreciation method Straight line Expected net cashflows: Year 1: $1,200,000 Year 2: $1,200,000 Year 3: $1,100,000 Year 4: $1,000,000 Year 5: $1,000,000
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