Hayden Company is considering the acquisition of a machine that costs $571,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $91,000, and annual operating income of $77,350. The estimated cash payback period for the machine (round to one decimal place) O a. 8.6 years O b. 6.3 years O c. 1.2 years Od 74 years

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
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Hayden Company is considering the acquisition of a machine that costs $571,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $91,000, and annual operating income of
$77,350. The estimated cash payback period for the machine is (round to one decimal place)
O a. 8.6 years
O b. 6.3 years
O c. 1.2 years
O d. 7.4 years
Transcribed Image Text:Hayden Company is considering the acquisition of a machine that costs $571,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $91,000, and annual operating income of $77,350. The estimated cash payback period for the machine is (round to one decimal place) O a. 8.6 years O b. 6.3 years O c. 1.2 years O d. 7.4 years
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