Question: ABC International has received a proposal from a manager, asking to spend $1,000,000 on equipment that will result in cash inflows in accordance with the

ABC International has received a proposal from a manager, asking to spend $1,000,000 on equipment that will result in cash inflows in accordance with the following table:

YearCash Flow1+$150,0002+180,0003+200,0004+300,0005+400,000

Required:Compute the payback period of the equipment. Would the propoasal of purchasing the equipment be acceptable if the maximum desired payback period is 4 years?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Hi. I need Chapter 11 part 1-4 Let me know. Thanks! (it wont letme add more than $8, but I will give $12+ tip) Personal Finance, Fifth Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK...

Q:

I need Chapter 2 & 3 finished. Chapter 4 & 5, Chapter 6 & 7, & Chapter 8. Some of this is completed, but it isn't 100% finished. Let me know if you can get to it. Personal Finance, Fifth Edition by...

Q:

download in the attach file and work on...

Q:

uestion: 1. IN A STOCK ACQUISITION ACCOUNTED FOR BY THE EQUITY METHOD, A PORTION OF THE PURCHASE PRICE OFTEN IS ATTRIBUTABLE TO GOODWILL OR TO SPECIFIC ASSETS OR LIABILITIES. HOW OR UNDER WHAT BASIS...

Q:

ABC International has received a proposal from a manager, asking to spend $1,000,000 on equipment that will result in cash inflows in accordance with the following table: YearCash...

Q:

ABC International has received a proposal from a manager, asking to spend $1,000,000 on equipment that will result in cash inflows in accordance with the following table: YearCash...

Q:

ABC International has received a proposal from a manager, asking to spend $1,000,000 on equipment that will result in cash inflows in accordance with the following table: YearCash...

Q:

ABC International: Solving the Rural Barrier Source: Thunderbird School of Global Management, A unit of the Arizona State University Knowledge Enterprise. 2015. This case was prepared by Erin Bell...

Q:

ABC International: Solving the Rural Barrier Source: Thunderbird School of Global Management, A unit of the Arizona State University Knowledge Enterprise. 2015. This case was prepared by Erin Bell...

Q:

ABC International: Solving the Rural Barrier Source: Thunderbird School of Global Management, A unit of the Arizona State University Knowledge Enterprise. 2015. This case was prepared by Erin Bell...

Q:

Find the effective rate of interest at which payments of $100 at the present, $200 at the end of one year. and $400 at the end of two years will accumulate to $900 at the end of two years. ANSWER= %.

Q:

6. The mean sales and standard deviation of two types of gasoline in a certain gasoline station are summarized in the table. (5 Points) a. 3,803.47 and -1,003.47 b. 8,303.47 and 5,300.23 c. 3,803.47...

Q:

Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years at which time its...

Q:

Pam and Pete formed a partnership in order to start a computer software consulting business. Pam was well aware that Pete could not be trusted with the partnership's money (he was likely to spend...

Q:

In the United States, some scientists, sociologists, and politicians propose that the access to environmental quality is not evenly distributed across the socioeconomic classes. In 2005, when...

Q:

What are the steps in performing a multiple regression?

Q:

What are the steps within the risk management frame work, explain each step and give an example of how they apply to a system such as a firewall, server, or computer? What is a system security risk...

Q:

What is strategic management? What are the steps in the strategic management process? In your opinion what company has an excellent strategy and why do you think its great?

Q:

A pointer holds a memory address.

Q:

Always have the dignity of the other or others as a backdrop.

Q:

1. There are two purposes in this chapter. The first is to break out of habits that have a limiting effect on ones own ability to change. Secondly, it is to understand how the cleaning affects the...