Buxton Corporation is evaluating a capital investment project which would require an initial investment of $240,000 to purchase new machinery.The annual revenues and expenses generated specifically by this project each year during the project's nine year life would be:

The residual value of the machinery at the end of the nine years would be $15,000.The payback period of this potential project in years would be closest to

Question

Buxton Corporation is evaluating a capital investment project which would require an initial investment of $240,000 to purchase new machinery.The annual revenues and expenses generated specifically by this project each year during the project's nine year life would be:

The residual value of the machinery at the end of the nine years would be $15,000.The payback period of this potential project in years would be closest to

Quizplus · Accepted Answer

A)
Investment/Annual cash flows
$240,000 / (67,000 + 25,000)= 2.6 yrs

Buxton Corporation Is Evaluating a Capital Investment Project Which Would