Calculate payback period
Payback period | ||
a | Alternative 1 (first plane) | 18870000/5100000 = 3.7 years |
Alternative 2 (Second plane) | 43240000/9400000 = 4.6 years | |
a-2 | Benson should accept | Alternative 1 (first plane) |
Check my Work Exercise 16-12 Determining the payback period LO 16-4 Benson Airline Company is considering...
Help Exercise 16-12 Determining the payback period LO 16-4 Adams Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $16,830,000; it will enable the company to increase its annual cash inflow by $5,100,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $34,960,000; it will enable the company to...
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Baird airlines compa
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North airline company is considering expanding its territory.
The company has the opportunity to purchase one of twoDifferent
used airplanes. The first airplane is expected to cost $12 million;
it will enable the company to increase its annual cash inflow by $4
million per year. The plane is expected to have a useful life of
five years and no salvage value. The second plane cost $24 million;
it will enable the company to increase annual cash flow by $6
million...
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