Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 8 equipment was purchased for $144,000

QUESTION 8 Equipment was purchased for $144,000 and it is estimated to have...

60.1K

Verified Solution

Question

Accounting

QUESTION 8

  1. Equipment was purchased for $144,000 and it is estimated to have a $14,000 salvage value at the end of its estimated 8-year life. The equipment is estimated to generate cash inflows of $24,000 each year and will be depreciated by using the straight-line method. The payback period on this investment is:

    a.

    3.8 years
    b.

    5.4 years
    c.

    6 years
    d.

    8 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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Is the following a Euler Circuit or Euler Path B D E

Basic Math
Q

Tami Tyler opened Tami’s Creations, Inc., a small manufacturingcompany, at the beginning of the...

Accounting
Q

The mechanics of blood flow in the body follows the laws of fluid dynamics for tubes...

Medical Sciences
Q

OD A person rolls two fair six sided dice a 1 3 b 5 12

Geometry
Q

Quadrilateral LMNO is similar to quadrilateral PQRS Find the measure of side PQ Round your...

Geometry
Q

Good credit The Fair Isaac Corporation FICO credit score is used by banks and other...

Statistics
Q

Vitex, Incorporated manufactures a popular consumer product and it has provided the following data excerpts...

Accounting
Q

A man borrowed P 50,000.00 payables in equal quarterly payment of P 1,827.79 for 10...

Accounting
Q

Project A costs $270,000 and offers eight annual net cash inflows of $58,000. Juda Products...

Accounting
Q

Determine the present worth in year 0 based on the following cash flow diagram.

Accounting
Q

Compute annual depreciation for the first and second years using the straight-line method. ...

Accounting
Q

Cardinal Company is considering a five-year project that would require a $2,850,000 investment in equipment...

Accounting