Question
Project A requires a $305,000 initial investment for new machinery with a five-year life and a salvage value of $30,500. The company uses straight-line depreciation.
Project A requires a $305,000 initial investment for new machinery with a five-year life and a salvage value of $30,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $27,700 per year for the next five years.
| cost of investment/ | Annual Net Cash Flow | Payback Period |
| $305000/ | ????? | ?????? |
| Compute Project A's payback period |
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Management Audits For Excellence
Authors: Dorsey J. Talley
1st Edition
0873890396, 978-0873890397
