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Quary Company is considering an investment in machinery with the following information. $ 362,000 9 years Initial investment Useful life Salvage value Expected sales per
Quary Company is considering an investment in machinery with the following information. $ 362,000 9 years Initial investment Useful life Salvage value Expected sales per year Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Selling price per unit $ 20,000 18,100 units $ 81,450 38,000 9,050 $ 10 (a) Compute the investment's annual income and annual net cash flow. (6) Compute the investment's payback period. Required A Required B Compute the investment's annual income and annual net cash flow. Investment's Annual Income Revenues Sales Expenses Materials, labor, and overhead $ 81,450 9,050 Selling, general and administrative expenses DepreciationMachinery 38,000 Total expenses 128,500 Annual Net Cash Flow 0 38,000 DepreciationMachinery Net cash flow Required A Required B Compute the payback period for this investment. Payback Period Numerator: Denominator: / = Payback period 0 =
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