Question
Ocean Wave Packaging is considering a $600,000 investment in new equipment that is anticipated to produce the following data over a five-year life: Year Cash
Ocean Wave Packaging is considering a $600,000 investment in new equipment that is anticipated to produce the following data over a five-year life:
| Year | Cash Inflows | Cash Outflows | Depreciation | ||||||||
| 1 | $ | 350,000 | $ | 130,000 | $ | 120,000 | |||||
| 2 | 450,000 | 190,000 | 120,000 | ||||||||
| 3 | 450,000 | 170,000 | 120,000 | ||||||||
| 4 | 340,000 | 150,000 | 120,000 | ||||||||
| 5 | 300,000 | 130,000 | 120,000 | ||||||||
Ignoring income taxes and assuming that cash flows occur evenly throughout a year, the equipment's approximate payback period is:
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Management Reporting Und Behavioral Accounting Verhaltenswirkungen Des Berichtswesens Im Unternehmen
Authors: Andreas Taschner
2nd., 2nd. Auflage Aufl. 2019 Edition
3658234911, 978-3658234911
