Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume that a company buys a new machine for $220,

Assume that a company buys a new machine for $220,000 that has a useful life...

80.2K

Verified Solution

Question

Accounting

Assume that a company buys a new machine for $220,000 that has a useful life of five years and a $20,000 salvage value. The new machine will replace an old machine that can be sold for a salvage value of $10,000. The machine will generate incremental contribution margin of $65,625 per year. The only fixed expense associated with the new machine is its annual depreciation of $40,000 per year. What is the payback period for this investment?

Multiple Choice

3.2 years

10.2 years

3.167 years

9.2 years

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

How does GIP and GLP-1 stimulate insulin secretion?

Medical Sciences
Q

4 List all the sets of number natural whole integer rational irrational real that each...

Basic Math
Q

Your little brother asks you to help him with his dinosaur project for school. He...

Basic Math
Q

y t solution of the initial value problem begin array c y prime prime 6...

Calculus
Q

K Kelly has different books to arrange on a shelf 4 blue 3 green and...

Algebra
Q

36 B D 48 E n circle O what is 84 96 O 120 168

Algebra
Q

The Music World Store carries a large inventory of guitars and other musical instruments. Company...

Accounting
Q

Define and discuss the weak-form EMH. Describe the two sets of tests used to examine...

Accounting
Q

Skysong Inc, a manufacturer of steel school lockers, plans to purchase a new punch press...

Accounting
Q

Koontz Company manufactures a number of products. The standards relating to one of these products...

Accounting
Q

The charter of a corporation provides for the issuance of 113,000 shares of common stock....

Accounting
Q

! Required information The Foundational 15(Static)[LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, LO8-10] ...

Accounting