Payback period, equal cash flows, and depreciation adjustment P1 Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $140,000. Project 2 requires an initial investment of $90,000. Compute (a) annual net cash flow and (b) payback period for each investment. Annual Amounts Sales of new product. Expenses.... Materials, labor, and overhead (except depreciation).. Depreciation Machinery Selling, general, and administrative expenses.. Income... Initial investment. Useful life ..... Salvage value. Expected sales per year..... Project 1 $100,000 $200,000 9 years $20,000 10,000 units 64,000 20,000 8,000 $ 8,000 Project 2 $80,000 Exercise 24-2 Payback period, equal cash flows, and depreciation adjustment P1 Quary Co. is considering an investment in machinery with the following information. Compute the investment's (a) annual income and annual net cash flow and (b) payback period. 35,000 18,000 20,000 $7,000 Materials, labor, and overhead (except depreciation). Depreciation Machinery...... Selling, general, and administrative expenses.. Selling price per unit $45,000 20,000 5,000 $10

Payback period, equal cash fows, and depreciation adjustment Pi Information for two alternative projects involving machinery investments follows. Project i requires an initial investment of st4o, ogo. Project 2 requires an initial investment of s9o,ooo, Compute (a) annual net cash flow and (b) payback period for each investment. Exercise 242 Payback period, equal eash flows, and depreciation adjestment P1 Quary Co. Is considering an investment in machinery with the following information. Compute the investment's (a) annual income and annual net cash flow and (b) payback period