Determining company payback period

Reference no: EM13140947

A company is considering the purchase of a new piece of equipment for $90,000. Predicted annual cash inflows from this investment are $36,000 (year 1), $30,000 (year 2), $18,000 (year 3), $12,000 (year 4) and $6,000 (year 5). The payback period is:

3.50 years.
3.00 years.
4.25 years.
4.50 years.
2.50 years.

Reference no: EM13140947

Questions Cloud

What is the final temperature of the water : A copper cube measuring 1.58cm on edge and an aluminum cube measuring 1.68cm on edge are both heated to 56.4 degrees C and submerged in 100.0mL of water at 21.6 degrees C. What is the final temperature of the water when equilibrium is reached? (As..

Explain hspice netlist example : Hspice Netlist example, Often Netlist is generated by programs such as Cadence. However, on the rare occasions when one has to look at Hspice netlist

What is the function of the proteins : what are some proteins that cause diseases, how do they cause the disease and what is the function of the proteins?

,is caveat a historical doctrine : According to sale of goods act of 1893,is caveat a historical doctrine?

Determining company payback period : A company is considering the purchase of a new piece of equipment for $90,000. Predicted annual cash inflows from this investment are $36,000 (year 1), $30,000 (year 2), $18,000 (year 3), $12,000 (year 4) and $6,000 (year 5). The payback period is..

Determine the amount of interest to be capitalized : Determine the amount of interest to be capitalized in 2010 in relation to the construction of the building.

Which cranial nerve was likely affected : A fracture of the temporal bone results in an inability to smile (lift the corner of the mouth on one side). Which cranial nerve was likely affected?

What is the percent yield of a reaction : What is the percent yield of a reaction in which 222 g phosphorus trichloride reacts with excess water to form 141 g HCl and aqueous phosphorus acid (H3PO3)?

Define circuit analysis : Bode plots were introduced in my second circuit analysis class, but I really didn't think it was important because it looked like an outdated tool no longer in use.

User Account

All Pages