The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for five years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment:

-The cash payback period for this investment is

Question

The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for five years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment:
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-The cash payback period for this investment is

Quizplus · Accepted Answer

The cash payback period is calculated by dividing the initial investment by the annual cash inflow. Without specific numbers provided in the question, the correct answer cannot be determined through calculation. However, if "A" is indicated as the correct choice, it suggests that based on the given (but not shown here) investment details and annual cash inflows, the cash payback period is 4 years.

The Management of Wyoming Corporation Is Considering the Purchase of a New