Exercise 24-2 (Algo) Payback period, equal cash flows, and depreciation adjustment LO P1

Quary Company is considering an investment in machinery with the following information.

Initial investment	$ 380,000		Materials, labor, and overhead (except depreciation)	$ 85,500
Useful life	9	years	DepreciationMachinery	40,000
Salvage value	$ 20,000		Selling, general, and administrative expenses	9,500
Expected sales per year	19,000	units	Selling price per unit	$ 10

(a) Compute the investments annual income and annual net cash flow. (b) Compute the investments payback period.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Compute the investments annual income and annual net cash flow.

Annual Amounts	Income	Cash Flow
Expenses
Income
Net cash flow

Compute the payback period for this investment.

Payback Period
Numerator:	/	Denominator:
	/		=	Payback period
			=