Cheyenne Company is considering the purchase of a machine with an estimated useful life of 5 years with the following data: Initial cost $220000 One-time training cost 31200 Annual maintenance costs 22000 Annual cost savings 110000 Salvage value 28600 The cash payback period is 2.79 years. 2.50 years. 2.85 years. 2.33 years.

Cheyenne Company is considering the purchase of a machine with an estimated useful life of 5 years with the following data: Initial cost $220000 One-time training cost 31200 Annual maintenance costs 22000 Annual cost savings 110000 Salvage value 28600 The cash payback period is 2.79 years. 2.50 years. 2.85 years. 2.33 years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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