A company is planning to purchase a machine that will cost $24,000 with a six-year life and no salvage value.The company expects to sell the machine's output of 3,000 units evenly throughout each year.A projected income statement for each year of the asset's life appears below.

-What is the payback period for this machine?
A)24 years.
B)12 years.
C)6 years.
D)4 years.
E)1 year.

Question

A company is planning to purchase a machine that will cost $24,000 with a six-year life and no salvage value.The company expects to sell the machine's output of 3,000 units evenly throughout each year.A projected income statement for each year of the asset's life appears below.

-What is the payback period for this machine?

-What is the payback period for this machine? 
A)24 years. 
B)12 years. 
C)6 years. 
D)4 years. 
E)1 year.

Quizplus · Accepted Answer

The Answer of A company is planning to purchase a machine that will cost $24,000 with a six-year life and no salvage value.The company expects to sell the machine's output of 3,000 units evenly throughout each year.A projected income statement for each year of the asset's life appears below.

-What is the payback period for this machine? 
A)24 years. 
B)12 years. 
C)6 years. 
D)4 years. 
E)1 year.

A Company Is Planning to Purchase a Machine That Will