Question
Carson company is investing in a new machine that costs $200,000. The new machine generates cash flows of $150000 for each of the next 3
Carson company is investing in a new machine that costs $200,000. The new machine generates cash flows of $150000 for each of the next 3 years. Carson uses a discount rate of 10%. what is the payback in years?
a 1 b 1.25 c 1.33 d 2
Do we have to consider the discount?
My answer
200000/150000
=1.33
Can some one help with explanation?
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Accounting And Order
Authors: Mahmoud Ezzamel
1st Edition
0415482615, 978-0415482615
