value 2.75 points TB MC Qu. 08-98 (Ignore income taxes in this problem.) Shields Company...
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value 2.75 points TB MC Qu. 08-98 (Ignore income taxes in this problem.) Shields Company has gathered the following data... Overly Measurements, Inc. manufactures a variety of scales that weigh trucks, people, and food. They are considering investing in a new piece of equipment so they can start making scales to weigh animals. The increased cash flow and other information about this proposed purchase are below: $470,000 $ 77,000 Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return 20 years 14 % The company uses straight-line depreciation on all equipment. For sake of simplicity assume these annual cash (in)flows are uniform (the same amount) every year for the life of the investment. The payback period for the investment is (Ignore income taxes in this problem: O 0.2 years 6.1 years 10 years O 0 4.1 years
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