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MC.10-092 MC.11-066 MC.11-074 MC.11-079 MC.11-095 MC.11-111 MC.11-112.ALGO MC.11-126 EX.07-02.ALGO BE.08-01.ALGO EX.09-02.ALGO BE.11.03.ALGO Hide or show questions Progress:30/39 items Question Content Area An anticipated purchase of
MC.10-092
MC.11-066
MC.11-074
MC.11-079
MC.11-095
MC.11-111
MC.11-112.ALGO
MC.11-126
EX.07-02.ALGO
BE.08-01.ALGO
EX.09-02.ALGO
BE.11.03.ALGO
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An anticipated purchase of equipment for $490,000 with a useful life of 8 years and no residual value is expected to yield the following annual net incomes and net cash flows:
Year | Net Income | Net Cash Flow | ||
1 | $60,000 | $110,000 | ||
2 | 50,000 | 100,000 | ||
3 | 50,000 | 100,000 | ||
4 | 40,000 | 90,000 | ||
5 | 40,000 | 90,000 | ||
6 | 40,000 | 90,000 | ||
7 | 40,000 | 90,000 | ||
8 | 40,000 | 90,000 |
What is the cash payback period?
a.5 years
b.4 years
c.6 years
d.3 years
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