Compute the payback period for each of these two separate
investments:
a) Payback period = Initial investment/Annual cash flow
Annual cash flow = 77884+52000 = 129884
Payback period = 270000/129884 = 2.08 Years
b) Annual cash flow = 43000+19600 = 62600
Payback period = 210000/62600 = 3.35 years
Compute the payback period for each of these two separate investments: A new operating system for...
Compute the payback period for each of
these two separate investments: A new operating system for an
existing machine is expected to cost $270,000 and have a useful
life of five years. The system yields an incremental after-tax
income of $77,884 each year after deducting its straight-line
depreciation. The predicted salvage value of the system is $10,000.
A machine costs $180,000, has a $14,000 salvage value, is expected
to last nine years, and will generate an after-tax income of
$43,000...
Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $280,000 and have a useful life of four years. The system yields an incremental after-tax income of $80,769 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $11,000. b. A machine costs $210,000, has a $15,000 salvage value, is expected to last ten years, and will generate an after-tax income...
Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $260,000 and have a useful life of four years. The system yields an incremental after-tax income of $75,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $170,000, has a $14,000 salvage value, is expected to last nine years, and will generate an after-tax income...
Compute the payback period for each of these two separate investments: points a. A new operating system for an existing machine is expected to cost $300,000 and have a useful life of four years. The system yields an incremental after-tax income of $86,538 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $12,000. b. A machine costs $180,000, has a $16,000 salvage value, is expected to last ten years, and will generate an after-tax...
Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $270,000 and have a useful life of six years. The system yields an incremental after-tax income of $77,884 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $210,000, has a $14,000 salvage value, is expected...
Compute the payback for each of these two separate
investments:
Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $240,000 and have a useful life of four years. The system yields an incremental after-tax income of $69,230 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $9,000. b. A machine costs $190,000, has a $13,000 salvage value, is expected...
Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $290,000 and have a useful life of five years. The system yields an incremental after-tax income of $83,653 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $11,000. b. A machine costs $210,000, has a $15,000 salvage value, is expected...
Exercise 5 a. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of 6 years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000 b. A machine costs $380,000, has a $20,000 salvage value is expected to last 8 years, and will generate an after tax income of $60,000 per year after straight-line depreciation. Compute...
mercise 24-5 Payback period computation; even cash flows LO P1 ampute the payback period for each of these two separate investments: .. A new operating system for an existing machine is expected to cost $280,000 and have a useful life of five years. The system yields an incremental after-tax income of $80,769 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $11,000. . A machine costs $180,000, has a $15,000 salvage value, is expected...
Saved Exercise 11-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $260,000 and have a useful life of five years. The system yields an incremental after-tax income of $75,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $200,000, has a $14,000 salvage value, is...