Question: Exercise 11-2 (Static) Payback period, equal cash flows, and depreciation adjustment LO P1 Quary Company is considering an investment in machinery with the following information.
Exercise 11-2 (Static) Payback period, equal cash flows, and depreciation adjustment LO P1 Quary Company is considering an investment in machinery with the following information. Initial investment $ 200,000 Useful life Salvage value Expected sales per year 9 years $ 20,000 10,000 units Materials, labor, and overhead (except depreciation) Depreciation-Machinery $ 45,000 20,000 Selling, general, and administrative expenses Selling price per unit 5,000 $ 10 (a) Compute the investment's annual income and annual net cash flow. (b) Compute the investment's payback period. Complete this question by entering your answers in the tabs below. Required A Required B Compute the investment's annual income and annual net cash flow. Annual Amounts Sales of new product Expenses Income Net cash flow Income Cash Flow $ 0 $ 0 Required A Required B Compute the payback period for this investment. Numerator: Payback Period Denominator: II = II = Payback period 0
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
