Monty Company is considering purchasing new equipment for $453,600. It is expected that the equipment will...

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Monty Company is considering purchasing new equipment for $453,600. It is expected that the equipment will produce net annual

business accounting

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Answer 1

Answer #1

Answer- Cash payback period =8.4 years.

Explanation- Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment. In case when cash inflow are even, then payback period are as follows-

Payback period =Initial investment / Cash Inflow per period

= $453600/$54000

= 8.4 years

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Answer 2

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