Question
Investment in depreciable equipment $ 640,000 Annual net cash flows $ 86,000 Life of the equipment 20 years Salvage value $ 0 Discount rate 9%
| Investment in depreciable equipment | $ 640,000 | |
|---|---|---|
| Annual net cash flows | $ 86,000 | |
| Life of the equipment | 20 | years |
| Salvage value | $ 0 | |
| Discount rate | 9% |
The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.
The payback period for the investment would be: (Round your answer to 1 decimal place.)
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Accounting Information For Business Decisions
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley
1st Edition
0030224292, 978-0030224294
