Question
Project Y requires a $348,000 investment for new machinery with a five-year life and no salvage value. The project yields the following annual results. Cash
Project Y requires a $348,000 investment for new machinery with a five-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
| Annual Amounts | Project Y |
|---|---|
| Sales of new product | $ 365,000 |
| Expenses | |
| Materials, labor, and overhead (except depreciation) | 163,520 |
| DepreciationMachinery | 69,600 |
| Selling, general, and administrative expenses | 26,000 |
| Income | $ 105,880 |
2. Determine Project Ys payback period.
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Handbook Of Energy Audits
Authors: Albert Thumann, Terry Niehus, William J. Younger
9th Edition
1466561629, 978-1466561625
