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antoniya [11.8K]
3 years ago
6

Storax Manufacturing purchases equipment for $50,000. The equipment has an expected life of 10 years and an estimated salvage va

lue of $2,000. Storax expects the new equipment to generate annual cost savings of $8,000. What is the payback period for the equipment
Business
1 answer:
Mashcka [7]3 years ago
8 0

Answer:

6.25 years

Explanation:

The formula to compute the payback period is shown below:

= Initial investment ÷ Net cash flow

where,  

The Initial investment is $50,000

And, the net cash flow is $8,000

Now put these values to the above formula  

So, the value would equal to

= ($50,00) ÷ ($8,000)

= 6.25 years

All other information which is given is not relevant. Hence, ignored it

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From this cartoon you can infer that the cartoonist:______. A) believes that England and Japan will soon be at war. B) opposes U
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Answer:

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Explanation:

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7 0
3 years ago
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow f
grandymaker [24]

Answer:

d. To find a project's IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs

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net present value = present value fo the cash inflow - investment

using the IRR on the cash inflow we have a present value equal to the investment made, which makes the net present value equal to zero.

Therefore, the IRR is the maximun rate the project can yield

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Which is a reason why it is important to organize information before preparing a business report?
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the answeris B, hope this helps

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