Question: An asset costs $ 2 7 0 0 0 0 and is expected to have a $ 3 0 0 0 0 salvage value at

An asset costs $270000 and is expected to have a $30000 salvage value at the end of its 10-year life. Straight-line depreciation will be used. The asset is expected to generate net cash inflows of $30000 each year. The cash payback period for the asset is
7 years.
9 years.
8 years.
10 years.
An asset costs $270000 and is expected to have a $30000

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:

Who are the customers of cost accounting?

Q:

An asset costs $ 9 7 0 , 0 0 0 and will be depreciated in a straight - line manner over its three - year life. It will have no salvage value. The corporate tax rate is 2 4 percent and the appropriate...

Q:

Maximmus Inc is considering an investment in a machine that costs 2 7 0 0 0 0 and would result in cash savings of 5 2 0 0 0 per year The machine will have an estimated useful life of 8 years and a 1...

Q:

Maximmus Inc is considering an investment in a machine that costs 2 7 0 0 0 0 and would result in he machine will have an estimated useful life of 8 years and a 1 0 0 0 0 disposal or salvage value at...

Q:

1. Notes or accounts receivables that result from sales transactions are often called a. sales receivables. b. non-trade receivables. c. trade receivables. d. merchandise receivables. 2. The term...

Q:

Economics Tutors.. 11. Shaffer Company acquires land for $77,000 cash. Additional costs are as follows. Removal of shed $ 300 Filling and grading 1,500 Salvage value of lumber of shed 120 Broker...

Q:

I am having trouble with the 2015 and 2016 statements balancing on the FSAP. Could you take a look at it and tell what is wrong and correct it? Financial Statement Analysis Package (FSAP) A Comment...

Q:

i have these in order , 13 is posted at the bottom! can somebody answer these? in order please! all of these needs to be answere please! Old Time Savings Bank pays 3% Interest on Its savings...

Q:

MCC Manufacturing Ltd. has decided to acquire a new piece of machinery in order to improve production.The company does not know whether it should purchase or lease the machinery.The initial cost of...

Q:

g y Check 112 and Check o rn a o c elor 3101 Theo r for the product and asso c i a tion o r to be buy some production machine for $5 million that has no o r e d with new business Operpentination...

Q:

Interest expense (1400000*7%) 98,000 Answer 2 (a) Straight-line depreciation Cost of assets (1750000*1.13 = 1977500) (1977500-(1977500*2%)) 1,937,950 Salvage value 320,000 Depreciable cost 1,617,950...

Q:

New capital equipment for your manufacturing process will cost about $16 million. Your accountants claim it is best to depreciate this equipment over 10 years using the straight line method. What...

Q:

An airline wants to provide access to a select group of travel agents to real time information held by the airline regarding flights which may have the potential for passenger seat upgrades. Which of...

Q:

Suppose you are considering purchasing a new truck for your plumbing business. This truck will increase revenues $55,099 and operating expenses $30,716 in the next year. Depreciation and amortization...

Q:

WHAT IS the cash flow statement BBINFIT ,AND HOW WE CAN ANALAYSES

Q:

3. As a result of a contraction in aggregate demand, the declines, but over time it returns to its former level as the expected price level . a. price level, rises b. price level, falls c. level of...

Q:

4. A rightward shift in aggregate moves the economy along the short-run Phillips curve to a point with inflation. a. supply, higher b. supply, lower c. demand, higher d. demand, lower

Q:

1. The sticky-price model of aggregate supply explains why a. output declines when prices fall below expected prices. b. expected inflation responds slowly to changing policies. c. recessions leave...