ShoGun Sushi buys a piece of equipment for $109,536 that will last for 4 years. The equipment will generate operating cash flows of $34,000 per year and will have no salvage value at the end of its life. The income tax rate is 30%. Straight line depreciation is used. What is the payback period?

Answer rating: 100% (QA)

Cost of machinery 109536 Salvage value 0 Life 4 years Depreciation per year 10953... View the full answer