Question: RNX Inc. purchased a machine for $40,000 which will save the company approximately $16,000 in even cash flows per year. What is the machine's payback

RNX Inc. purchased a machine for $40,000 which will save the company approximately $16,000 in even cash flows per year. What is the machine's payback period?

a)5 years

b)3 years

c)2.5 years

d)3.6 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!

1. Monique had just invested Php600,000 in a restaurant. She expects to receive cash income of Php75,000 a year. What is the payback period? a. 5 years b. 7.7 years c. 6.5 years d. 8 years 2....

Circle the letter of the best response. 1 . Which of the following is NOT an assumption of Cost-Volume-Profit analysis? A. Inventory levels will not change. B. Managers can classify each cost as...

1. If a copy center is considering the purchase of a new copy machine with an initial investment cost of $150,000 and the center expects an annual net cash flow of $20,000 per year, what is the...

Dear all, Please I need the answers for all the attached questions Part B CE 24-1 As sales manager, Hank Short was given the following static budget report for selling expenses in the Winter Sports...

After many years trying to come up with an experience retail concept, you have finally found one. Its calledThe Guild. Building the Guild will cost approximately $17,000,000. It will include a number...

QUESTION 5 (20 MARKS: 36 MINUTES) Juara Tire Sdn Bhd (JTSB) is one of the largest tire manufacturer in Asia and it is the leading supplier to the automotive industry for the tire technology in...

Juara Tire Sdn Bhd (JTSB) is one of the largest tire manufacturer in Asia and it is the leading supplier to the automotive industry for the tire technology in Malaysia. In line with the Fourth...

6) Salinas Comp N service departments, Maintenance and Human Resources. Salinas 6) Company also toduction departments, Mixing and Finishing. Maintenance costs are allocated based on square footage...

1. How much would Kristen have to deposit in the bank at the end of each of the next five years if she wishes to have $5,000 in the bank at the end of that time period, assuming she will be earning...

mules, U5 seconds. Question Completion Status: QUESTION 9 1 po GNR Inc. purchased a machine for $36,000 which will save the company approximately $6,000 in even cash flows per year. What is the...

What are the major advantages and disadvantages of Census of Population data in delineating trading areas?

For Flynn Company, variable costs are 70% of sales, and fixed costs are $195,000. Managements net income goal is $75,000. Compute the required sales in dollars needed to achieve managements target...

short-term forecast.econometric model.cash-basis accounting system.capital budget. Tishian's Funeral Home has been in business for over 80 years. Throughout its history, the firm has been a...

The Regent Resort and Hotel is located on a rural piece of property outside of the town of Bugtussle, about 25 miles from the county seat of Sibley. The property contains a small natural lake which...

11. Take a familiar problem as your starting point. a) Frame the problem so that it promotes aggressive behaviour. b) Frame the problem so that it promotes defensive behaviour.

2. Give examples from your everyday life that understanding the context is crucial to how you act.

4. Give examples of how a communication situation can change from a win-lose to a winwin situation.