Apex Company invested $14,400 in new equipment. The more efficient new equipment was expected to reduce operating
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Question:
Apex Company invested $14,400 in new equipment. The more efficient new equipment was expected to reduce operating cash outflows over the next five years by the following:
yr1 = $8000 yr2= $6000 yr3= $5000 yr4= $6000 yr5= $5000
Using the averaging method, the payback period for the investment in the oven would be:
A) 3.0 years B) 2.4 years C) 2.0 years D) 1.7 years
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Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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