Wallowa Company is considering a long term investment project called ZIP ZIP will require an investment of $120,000 It will have a useful life of 4 years and no salvage value Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000 Compute the cash payback p...

Estimated annual cash inflows ...

Wallowa Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000.

Question:

Wallowa Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no . Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. Compute the cash payback period.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...