Kansas Mining is evaluating a proposal to invest in a new piece of equipment costing $55,000 with the following annual cash flows over the equipment's 4-year useful life:
$$\begin{array} { l r }
\text { Cash revenues } & \$ 95,000 \
\text { Cash expenses } & ( 52,000 ) \
\text { Depreciation expenses (straight-line) } & \underline{( 13,750 )} \
\text { Income provided from equipment } & \underline{\$ 29,250} \
\text { Cost of capital } & 14 \text { percent }
\end{array}$$ The investment's payback period is (rounded to two decimal places):

Question

Kansas Mining is evaluating a proposal to invest in a new piece of equipment costing $55,000 with the following annual cash flows over the equipment's 4-year useful life:
$$\begin{array} { l r } 
\text { Cash revenues } & \$ 95,000 \
\text { Cash expenses } & ( 52,000 ) \
\text { Depreciation expenses (straight-line) } & \underline{( 13,750 )} \
\text { Income provided from equipment } & \underline{\$ 29,250} \
\text { Cost of capital } & 14 \text { percent }
\end{array}$$ The investment's payback period is (rounded to two decimal places):

Quizplus · Accepted Answer

The Answer of Kansas Mining is evaluating a proposal to invest in a new piece of equipment costing $55,000 with the following annual cash flows over the equipment's 4-year useful life:
$$\begin{array} { l r } 
\text { Cash revenues } & \$ 95,000 \
\text { Cash expenses } & ( 52,000 ) \
\text { Depreciation expenses (straight-line) } & \underline{( 13,750 )} \
\text { Income provided from equipment } & \underline{\$ 29,250} \
\text { Cost of capital } & 14 \text { percent }
\end{array}$$ The investment's payback period is (rounded to two decimal places):

Kansas Mining Is Evaluating a Proposal to Invest in a New