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solmaris [256]
3 years ago
11

Rihanna Company is considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual

cash flows of $60,000 over its 10-year useful life. Annual depreciation will be $45,000. Compute the cash payback period
Business
1 answer:
mariarad [96]3 years ago
8 0

Answer:

7.5 years

Explanation:

Payback is the period a project takes to recover its initial capital outflow.

The formula for calculating the payback period = Initial investments divide by net cash flow per period.

Payback Period = Initial Investments/ Net Cash Flow per Period

Payback period = $450,000/ $60,000

Payback period =7.5 years

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Answer and Explanation:

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a) Volume required for break even at location A

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3 years ago
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Answer: 3, 4, 5.

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Explanation:

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2 years ago
To measure the strength of a currency, you can
ZanzabumX [31]
C. Foreign

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2 years ago
Read 2 more answers
Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit $590​ Variable cost p
Fofino [41]

Answer:

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Explanation:

We will calculate the point at which the company mantains his current income in units at the new scenario:

\frac{Fixed\:Cost + target \: income}{Contribution \:Margin} = Break\: Even\: Point_{units}

<u>Where:</u>

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625 - 190 = 435 each units contributes this amount to afford the fixed cost and make a gain.

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3 years ago
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