Marigold Company is considering a long-term investment project called ZIP.ZIP will require an investment of $130,854. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,600, and annual cash outflows would increase by $41,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period years.
Marigold Company is considering a long-term investment project called ZIP.ZIP will require an investment of $130,854. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,600, and annual cash outflows would increase by $41,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period 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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![Marigold Company is considering a long-term investment project called ZIP.ZIP will require an investment of $130,854. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,600, and annual cash outflows would increase by
$41,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.)
Cash payback period
years.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d52e816-b54c-42e7-82df-d6aca6703dd2%2F298add42-a5b8-47ba-9a99-317f6e99f439%2Fgiviflj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Marigold Company is considering a long-term investment project called ZIP.ZIP will require an investment of $130,854. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,600, and annual cash outflows would increase by
$41,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.)
Cash payback period
years.
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