The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at the interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment:Year Income from Operations Net Cash Flow1 $20,000 $95,0002 $20,000 $95,0003 $20,000 $95,0004 $20,000 $95,0005 $20,000 $95,000
The cash payback period for this investment is:
a. 5 yearsb. 4 yearsc. 3 yearsd. 20 years
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
An ad on the newsnow web site asks viewers to "send us your story and we might share it with the world." ollie submits a manuscript, adding, "i accept your offer." between newsnow and ollie, there is
Answers (2)
1. Even though you have no idea who you will marry, you are planning to have an elaborate wedding 4 years from now. The estimated cost of the wedding is $52,000 and you expect to earn 3.5 percent on your savings.
Answers (1)
A car dealership in upstate new york where winters are cold and snowy has experienced lower sales for auto repairs.
Answers (1)
TJ Vargas signed the back of his checks for deposit and then lost them on the way to the bank. When he contacted the issuers of the checks to try to have them reissued, he discovered that the checks had already cleared.
Answers (1)
On March 5, Oak Corp. provided services on account to Pine. Oak initially recorded this as an account receivable but it later became apparent Pine could not pay quickly so Oak required Pine to sign a $100,000, 12%, 2-month interest-bearing note.
Answers (1)
New Questions in Business
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
An Insurance company is a business in which it pays to the company if there is a loss, damage, treatments or injury for the payment of premium amount. It calculates the risks that has occurred and pays to compensate the premium amount.
Answers (1)
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines.
Answers (1)
Use the following example to answer the following questions: Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.
Answers (1)