Langueville Manufacturing Company is considering the following investment proposal: Original investment $13,500 Operations (per year for four
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Question:
Langueville Manufacturing Company is considering the following investment proposal:
Original investment | $13,500 |
| |
Operations (per year for four years): | |
Cash receipts | $10,000 |
Cash expenditures | 5,500 |
| |
Salvage value of equipment after four years | $1,000 |
| |
Discount rate | 10% |
| |
The firm uses the straight-line method of depreciation with no mid-year convention.
What is the payback period in years approximated to two decimal points, assuming no taxes are paid?
1.75
1.50
3.0
3.5
Related Book For
Accounting Information Systems
ISBN: 978-0133428537
13th edition
Authors: Marshall B. Romney, Paul J. Steinbart
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