MNO company is evaluating a proposal for purchase of equipment which will cost S180,000. The cash inflows from the use of equipment is given below: Year Cash flow S60,000 $40,000 S70,000 $125,000 $35,000 3 4 Payback period for the proposal is: а. 3 уears b. 2 years c. 4 years d. 3.08 years 12Mltn

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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You are attempting question 8
MNO company is evaluating a proposal for purchase of equipment which will cost
S180,000. The cash inflows from the use of equipment is given below:
Year
Cash flow
S60,000
$40,000
S70,000
$125,000
$35,000
1
3
4
Payback period for the proposal is:
а. 3 years
b. 2 years
с. 4 years
d. 3.08 years
Transcribed Image Text:Note: - You are attempting question 8 MNO company is evaluating a proposal for purchase of equipment which will cost S180,000. The cash inflows from the use of equipment is given below: Year Cash flow S60,000 $40,000 S70,000 $125,000 $35,000 1 3 4 Payback period for the proposal is: а. 3 years b. 2 years с. 4 years d. 3.08 years
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