Question: Example: A new process for a manufacturing process will have a first cost of $55,000 with annual costs of $38,000. Extra income associated with the

Example: A new process for a manufacturing process will have a first cost of $55,000 with annual costs of $38,000. Extra income associated with the new process is expected to be $62,000 per year. What is the payback period at i = 12% per year?

a) 2.29

b) 3.00

c) 6.00

d) 2.14

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!

A new process for a manufacturing process will have a first cost of $45,000 with annual costs of $38,000. Extra income associated with the new process is expected to be $62,000 per year. What is the...

A manufacturing process have a first cost of $35,000 with annual costs of $17,000. Extra income associated with the new process is expected to be $22,000 per year. What is the payback period at (a) i...

MULTIPLE CHOICE 1 Using the recurrence relation t0 = 8, tn+1 = tn + 9, the sixth term would be: A 2 15 B 17 C 23 D 53 E 62 A canoe costs $40 to hire for the first day and $30 for each extra day. If...

The Northern Appliance Company (NAC) assembles refrigerators for the domestic market. The compressor units used in the model F70 refrigerator are purchased from international suppliers. An analysis...

Lab 7 help please. I have nearly finished the entire lab but there are portions i am unable to figure out. i have attached all of the supporting documents. Please answer both remaining parts and let...

Each year, Worrix Corporation manufactures and sells 3,100 premium quality multimedia projectors at $12,100 per unit. At the current production level, the firm's manufacturing costs include variable...

Each year, Worrix Corporation manufactures and sells 4,000 premium quality multimedia projectors at $13,000 per unit. At the current production level, the firm's manufacturing costs include variable...

Each year, Worrix Corporation manufactures and sells 3,700 premium-quality multimedia projectors at $12,700 per unit. At the current production level, the firms manufacturing costs include variable...

Answer these Keep or Replace the Kiln Case PE In Example 1 1.8, the in-place kiln and replacement killm (GH) were evaluated using a fixed study pe- riod of & years. This is a significantly shortened...

Carolyn McSwain was driving a vehicle owned by John Denham in New York City on November 5, 1994. In the vehicle with McSwain were John Denhams mother Ollie Denham and Johns child, Raesine. All the...

Which amino acids in the urea cycle are the links to the citric acid cycle? Show how these links occur

Calculate the restaurant project's net present value (NPV). (Ans: Net present value= $152,765) The airport's Financial Director has provided the following taxation information: Tax depreciation: 25%...

Cookie settings can be adjusted in Google Chrome many different ways. They include _ _ _ _ _ _ _ _ , _ _ _ _ _ _ _ _ , and _ _ _ _ _ _ _ _ . Check All That Apply blocking / allowing cookies by...

=+What is our leadership style like?

=+What are our core competencies or competitive advantages?

=+What is our voice as a brand, and what is the voice of our community?