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Please help, thanks! Brisbane Company is considering investing in new equipment that will cost $975,000 with a 10-year useful life. The new equipment is expected
Please help, thanks!
Brisbane Company is considering investing in new equipment that will cost $975,000 with a 10-year useful life. The new equipment is expected to produce annual net income of $68,000 over its useful life. Depreciation expense, using the straight-line rate, is $112,000 per year. (Hint: Your net annual cash flows will be calculated as net income plus depreciation expense. Think of how cash balance is calculated using indirect method in preparing a statement of cash flows. You have to use net income and calculate the cash balance indirectly by adding non-cash expense.) Compute the cash payback period. Round answer to 1 decimal place such as 1.2 Step by Step Solution
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