Question
Cash Payback Hermson Company must evaluate two capital expenditure proposals. Hermons hurdle rate is 12%. Data for the two proposals follow. Proposal X Proposal Y
Cash Payback
Hermson Company must evaluate two capital expenditure proposals. Hermons hurdle rate is 12%. Data for the two proposals follow.
Proposal X Proposal Y
Required investment $190,000 $210,000
Annual after-tax cash inflows 42,000 $55,000
What is the cash payback period for proposal X and proposal Y?
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Principles Of Financial Accounting (Chapters 1-17)
Authors: John Wild
25th Edition
1260780147, 9781260780147
