With a $100,000 investment in a new injection moulding machine, A-Design Inc., a company specialized in the design and manufacturing of armrests for wheelchairs was able to achieve an operating income of $36,000 in its first year of production/operation. The interest expenses on the money A-Design has borrowed were $5,000 per year. 3. What is the simple payback period (in years) for the injection moulding machine investment?

With a $100,000 investment in a new injection moulding machine, A-Design Inc., a company specialized in the design and manufacturing of armrests for wheelchairs was able to achieve an operating income of $36,000 in its first year of production/operation. The interest expenses on the money A-Design has borrowed were $5,000 per year. 3. What is the simple payback period (in years) for the injection moulding machine investment?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 4CE: Manzer Enterprises is considering two independent investments: A new automated materials handling...

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With a $100,000 investment in a new injection mouldingmachine, A-Design Inc., a company specialized in thedesign and manufacturing of armrests for wheelchairswas able to achieve an operating income of $36,000 inits first year of production/operation. The interestexpenses on the money A-Design has borrowed were$5,000 per year. 2. Determine the return on investment of A-Design Inc. forits new injection moulding machine.
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