Hayden Company is considering the acquisition of a machine that costs $429,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $84,000, and annual operating income of $71,400. The estimated cash payback period for the machine is (round to one decimal place) Oa. 7.2 years O b. 6.0 years O c. 1.2 years O d. 5.1 years
Hayden Company is considering the acquisition of a machine that costs $429,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $84,000, and annual operating income of $71,400. The estimated cash payback period for the machine is (round to one decimal place) Oa. 7.2 years O b. 6.0 years O c. 1.2 years O d. 5.1 years
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 18EB: Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the...
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