(Ignore income taxes in this problem.) Friden Company has just purchased a new piece of equipment with the following characteristics:
-Assume straight-line depreciation and no salvage value.The payback period would be:

Question

(Ignore income taxes in this problem.) Friden Company has just purchased a new piece of equipment with the following characteristics: 
-Assume straight-line depreciation and no salvage value.The payback period would be:

Quizplus · Accepted Answer

Payback period = Investment required F1F1F1S1F1F1F10 Annual net cash inflow
= $27,000 F1F1F1S1F1F1F10 $6,000 = 4.5 years

(Ignore Income Taxes in This Problem