The Higgins Company has just purchased a piece of equipment at a cost of $120,000. This equipment
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Question:
The Higgins Company has just purchased a piece of equipment at a cost of $120,000. This equipment will reduce operating costs by $40,000 each year for the next eight years. This equipment replaces old equipment which was sold for $8,000 cash. The new equipment has a payback period of:
a. 8.0 years
b. 2.8 years
c. 10.0 years
d. 3.0 years
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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