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Marigold Company has identified that the cost of a new computer will be $32000, but with the use of the new computer, net income will
Marigold Company has identified that the cost of a new computer will be $32000, but with the use of the new computer, net income will increase by $3000 a year. If depreciation expense is $1000 a year the cash payback period is. 8.0 years, 16.0 years. 10.7 years 32.0 years. Pina Colada Company is considering the purchase of a machine with an estimated useful life of 5 years with the following data: Initial cost One-time training cost Annual maintenance costs Annual cost savings Salvage value $180000 24800 18000 90000 23400 The cash payback period is 2.76 years. 2.84 years 2.50 years. 232 years
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