Blossom Company has identified that the cost of a new computer will be $50000, but with the use of the new computer, net income will increase by $7000 a year. If depreciation expense is $3000 a year, the cash payback period is: 5.0 years. 7.1 years. 16.7 years. 12.5 years.
Blossom Company has identified that the cost of a new computer will be $50000, but with the use of the new computer, net income will increase by $7000 a year. If depreciation expense is $3000 a year, the cash payback period is: 5.0 years. 7.1 years. 16.7 years. 12.5 years.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 21BEA
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Blossom Company has identified that the cost of a new computer will be $50000, but with the use of the new computer, net income will increase by $7000 a year. If
5.0 years.
7.1 years.
16.7 years.
12.5 years.
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