MNO company is evaluating a proposal for purchase of equipment which will cost $180,000. The cash inflows from the use of equipment is given below: Year Cash flow $60,000 $40,000 $70,000 $125,000 $35,000 1 Payback period for the proposal is: a. 3 years b. 2 years с. 4 years d. 3.08 years 2345

MNO company is evaluating a proposal for purchase of equipment which will cost $180,000. The cash inflows from the use of equipment is given below: Year Cash flow $60,000 $40,000 $70,000 $125,000 $35,000 1 Payback period for the proposal is: a. 3 years b. 2 years с. 4 years d. 3.08 years 2345

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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Question

MNO company is evaluating a proposal for purchase of equipment which will cost
$180,000. The cash inflows from the use of equipment is given below:
Year
Cash flow
$60,000
$40,000
$70,000
$125,000
$35,000
4.
Payback period for the proposal is:
a. 3 years
b. 2 years
c. 4 years
d. 3.08 years
DELL
123 45

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