sales and expenses are projected:
Assume cash flows occur uniformly throughout a year except for the initial investment.
-The payback period on the new machine is closest to:

Question

sales and expenses are projected:
  Assume cash flows occur uniformly throughout a year except for the initial investment.
-The payback period on the new machine is closest to:

Quizplus · Accepted Answer

11ea7761_15c0_04a8_81a5_8592ad53757f_TB2580_00 Payback period = Investment required ÷ Annual net cash inflow
= $16,000 ÷ $6,000 per year = 2.7 years (rounded)

Sales and Expenses Are Projected