Business
Business, 16.06.2020 23:57, keshho

An anticipated purchase of equipment for $490,000 with a useful life of 8 years and no residual value is expected to yield the following annual incomes and net cash flows: Year Net Income Net Cash Flow
1 $60,000 $110,000
2 50,000 100,000
3 50,000 100,000
4 40,000 90,000
5 40,000 90,000
6 40,000 90,000
7 40,000 90,000
8 40,000 90,000
The cash payback period for the equipment is:.
a. 5 years
b. 4 years
c. 3 years
d. 6 years

answer
Answers: 3

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