Question
DO IT! 12.1 (LO 1), AP Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $140,000. It will
DO IT! 12.1 (LO 1), AP Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $140,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. Compute the cash payback period. Calculate net present value of an investment.
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
