The Amani Company is planning a $200,000 equipment investment that has an estimated eight-year life with no estimated salvage value. The company has projected the following annual cash flows for the investment. Year Cash Inflows $120,000 $70,000 $60,000 $60,000 $60,000 tal $370,000 1 ming that the cash inflows occur evenly over the year, what is the payback d for the investment? (Ignore income taxes in this nrohlem

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Amani Company is planning a $200,000 equipment investment that has an
estimated eight-year life with no estimated salvage value. The company has
projected the following annual cash flows for the investment.
Year Cash Inflows
$120,000
$70,000
$60,000
$60,000
$60,000
Total $370,000
1
4.
Assuming that the cash inflows occur evenly over the year, what is the payback
period for the investment? (Ignore income taxes in this problem.)
Transcribed Image Text:The Amani Company is planning a $200,000 equipment investment that has an estimated eight-year life with no estimated salvage value. The company has projected the following annual cash flows for the investment. Year Cash Inflows $120,000 $70,000 $60,000 $60,000 $60,000 Total $370,000 1 4. Assuming that the cash inflows occur evenly over the year, what is the payback period for the investment? (Ignore income taxes in this problem.)
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