Hayden Company is considering the acquisition of a machine that costs $392,000. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $89,000, and annual operating income of $75,650. What is the estimated cash payback period for the machine (round to one decimal points)? a.5.2 years b.6.4 years c.4.4 years d.1.2 years
Hayden Company is considering the acquisition of a machine that costs $392,000. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $89,000, and annual operating income of $75,650. What is the estimated cash payback period for the machine (round to one decimal points)? a.5.2 years b.6.4 years c.4.4 years d.1.2 years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hayden Company is considering the acquisition of a machine that costs $392,000. The machine is expected to have a useful life of six years, a negligible residual value, an annual net
a.5.2 years
b.6.4 years
c.4.4 years
d.1.2 years
can also explain how? thank you !
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