Calculate the payback period for the investment

Assignment Help Accounting Basics
Reference no: EM131751412

Problem - Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.)

  Investment required in equipment $680,000     
  Annual cash inflows $66,000     
  Salvage value $0     
  Life of the investment 20 years     
  Required rate of return 7%  

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period for the investment is closest to:

Reference no: EM131751412

Questions Cloud

Discuss the cash surrender value of a life insurance policy : Cash includes the cash surrender value of a life insurance policy $9,000, and a bank overdraft of $2,000 has been deducted.
Benefits analysis for lululemon partnering : Make a cost benefits analysis for Lululemon partnering with Nike to bring a new product to market. From your knowledge of the firm
Examine that the variance in die weight is greater : Sports and Leisure The specified weight of a 22-mm die used at casinos in Las Vegas, Nevada, is 10.4 g. The variability in die weight must be negligible.
Discuss one sociological theory : Discuss one (1) sociological theory that relates to the selected contributing factor to obesity.
Calculate the payback period for the investment : Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment is closest to
Challenges faced in projecting demand : Detail and discuss all the challenges faced in projecting demand: meeting customer needs and wants, pricing, competitive actions and competitive response.
Providing products and services and conducting business : Businesses collect and store data on us all of the time. They use this data in marketing, providing products and services and conducting business with us.
How would a different method or attitude changed the outcome : How would have a different method or attitude changed the outcome? What other aspects of the situation could be changed for better outcomes? etc.
Compute the standard deviation in beam diameter : Manufacturing and Product Development SoLux produces special light bulbs for museums, photography studios, automotive paint finishing, and machine vision.

Reviews

Write a Review

Accounting Basics Questions & Answers

  If the auditor tests controls only at a particular point in

if the auditor tests controls only at a particular point in time then the auditor only obtains evidence that the

  Net realizable value at split-off approach

Assuming that total joint costs are allocated using the net realizable value at split-off approach, what amount of the joint costs was allocated to product XX-1?

  The company acquired a tract of land in exchange

The following transactions of the Weber Company occurred during 2010:

  Define benefit pension plan for the specific year

(Computation of Pension Expense) Veldre Company provides the following information about its defined benefit pension plan for the year 2014.

  Blues current e amp p is 60000 and at the end of the year

at the start of the current year blue corporation a calendar year taxpayer has accumulated e amp p of 1000000. blues

  What are the total assets of the company

What are the total assets of the company. What are the current assets of the company. Provide a segmental breakdown of the markets.

  What was the under-applied or over-applied overhead

The budget for the month of May calls for 7,400 direct labor hours to be worked. What was the under-applied or over-applied overhead for the month of May

  Prepare journal entries to close the temporary accounts

On July 1, 2013, Lula Plume created a new self storage business, Safe Storage Co. The following transactions occurred during the company's first month.

  Explicit references to the audience

Explicit references to the audience, inclusive language, and a clear organizational pattern are all strategies for encouraging

  Give some examples of manufacturing processes

Give some examples of manufacturing processes that would fit into each of the three different types of production processes: continuous processing, batch processing, and custom made to order.

  Prepare the necessary correcting entries

Prepare the necessary correcting entries, assuming that Kingbird uses a calendar-year basis. The books for the current year have not been closed

  Proforma balance sheet: basic leonard industries

Proforma balance sheet: Basic Leonard Industries

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd