Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $135,000.
Question:
Information for two alternative projects involving machinery investments follows.
Project 1 requires an initial investment of $135,000.
Project 2 requires an initial investment of $98,000. Compute
(a) Annual net cash flow and
(b) Payback period for each investment.
Transcribed Image Text:
Annual Amounts Project 1 Project 2 Sales of new product . $100,000 $80,000 Expenses.. Materials, labor, and overhead (except depreciation).. 65,000 32,000 Depreciation-Machinery ...... 20,000 18,000 Selling, general, and administrative expenses... 8,000 20,000 Income... $ 7,000 $10,000 ...
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a b Annual Amounts Sales of new product Expenses Materials labor ...View the full answer
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