the amount giving is 25000

PayBackPer URR Homework Assignment - Chapter 12 Calculate the Payback Period The payback period is the length of time required for the cash to be coming in from an investment to equal the amount of cash originally spent when the investment was acquired. Assumptions 500.000 10 years I Purchase price of equipment 2 Useful life of equipment 3 Revenue the machine will generate per year 4 Direct operating costs associated with camning 25.000 the revenue 121,000 5 Depreciation Expense per year 50,000 Using the above five assumptions, calculate how many years it will take to recoup the original investment. Step 1 Find the machine's expected net income Revenue Less. Direct Operating Costs Depeciation Net Income 0 Step 2 Find the net annual cash inflow the machine is expected to generate (convert niet income to cash basis) 0 Net Income Add back Depreciation Annual Net Cash Inflow 0 Step 3 Compute the payback period Investment Net Annual Cash Intlow PayBackPer URR Homework Assignment - Chapter 12 Calculate the Pack Periped The payback period is the length of time required for the cash to be coming in from an investment to equal the amount of cash originally spent when the investment was acquired 500,000 10 years Assumption I Purchase price of equipment 2 Useful life of equipment Revenue the machine will reale per year Direct operating costs associated with eaming the reven 5 Depreciation Experte per your 25,000 121,000 50.000 Using the above the assumption, calculate how many years it will take to recoup the original investment Stop! Find the machine's expected net income Revenue Less Direct Operating Costs Depreciation Net Income Step 2 Find the wall cash inflow the machine is expected to generale (convert net income to cash Net Income Add back Depreciation Ana Net Cash Intlow Step) Compute the payback period Investment Nel Antal Cashflow