Hayden Company is considering the acquisition of a machine that costs $320,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $86,000, and annual operating income of $73,100. What is the estimated cash payback period for the machine (round to one decimal points)? Oa. 1.2 years Ob. 5.6 years Oc. 3.7 years Od. 4.4 years
Hayden Company is considering the acquisition of a machine that costs $320,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $86,000, and annual operating income of $73,100. What is the estimated cash payback period for the machine (round to one decimal points)? Oa. 1.2 years Ob. 5.6 years Oc. 3.7 years Od. 4.4 years
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 13P
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