The cost of a new machine is $250,000. The machine has a five-year life and no salvage value. If the cash flow each year is equal to 25 percent of the cost of the machine, calculate the payback period for the project.
A: 2.0 years
B: 2.5 years
C: 3.0 years
D: 4.0 years
A: 2.0 years
B: 2.5 years
C: 3.0 years
D: 4.0 years
举一反三
- Mansi Inc. is considering a project that has the following cash flow data. What is the project's payback?Year 0 1 2 3Cash flow -450 300 325 350 A: 1.42 years B: 1.36 years C: 1.65 years D: 1.46 years
- 中国大学MOOC: The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine?
- A company uses the machine hours method to depreciate the machinery in its factory. A machine that cost $120,000 has an estimated residual value of $30,000 at the end of its four-year useful operating life. Usage over the four years is expected to be:What is the depreciation charge for the machine in Year 3? A: $23,333 B: $31,111 C: $38,889 D: $76,667
- The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine? A: $4697 B: $3575 C: $4111 D: $3109
- What is the payback if the initial investment is $60,000 and the cash flows are? ( )Year 1$20,000Year 2$25,000Year 3$30,000Year 4$10,000Year 5$5,000 A: 1.75 years B: 2.25 years C: 2.50 years D: 2.45 years