Heidi Company is considering the acquisition of a machine that costs $596,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $121,000, and annual operating income of $86,546. The estimated cash payback period for the machine is (round to one decimal point)? a.4.9 years b.6.9 years c.6.0 years d.7.5 years
Heidi Company is considering the acquisition of a machine that costs $596,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $121,000, and annual operating income of $86,546. The estimated cash payback period for the machine is (round to one decimal point)? a.4.9 years b.6.9 years c.6.0 years d.7.5 years
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 13P
Related questions
Question
Heidi Company is considering the acquisition of a machine that costs $596,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $121,000, and annual operating income of $86,546. The estimated cash payback period for the machine is (round to one decimal point)?
a.4.9 years
b.6.9 years
c.6.0 years
d.7.5 years
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning