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this is all . Exercise a rayback period computation; even can now LUI Compute the payback period for each of these two separate investments a.

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this is all .
Exercise a rayback period computation; even can now LUI Compute the payback period for each of these two separate investments a. A new operating system for an existing machine is expected to cost $240,000 and have a useful life of five years. The system yields an incremental after-tax income of $69.230 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $9.000 b. A machine costs $190,000, has a $13,000 salvage value, is expected to last eight years, and will generate an after tax income of $38,000 per year after straight line depreciation Payback period - Choose Numerator Cost of investment $ 240,000 $ 190,000 Choose Denominator: Annual net cash flow 1 09430 Payback Period Payback period 2 19 years / s /

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