Question: =+EX 26-6 Cash payback method obj. 2 a. Liquid Soap: 3 years The following data are accumulated by Reynolds Company in evaluating the purchase

=+EX 26-6 Cash payback method obj. 2

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a. Liquid Soap: 3 years The following data are accumulated by Reynolds Company in evaluating the purchase of $104,000 of equipment, having a four-year useful life:

Net Income Net Cash Flow Year 1 $38,000 $64,000 Year 2 23,000 49,000 Year 3 11,000 37,000 Year 4 (1,000) 25,000

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