Question
In: Accounting
Patterson Corp. is considering the purchase of a new piece of equipment, which would have an...
Patterson Corp. is considering the purchase of a new piece of
equipment, which would have an initial cost of $528,000, a 7-year
life, and $150,000 salvage value. The increase in net income each
year of the equipment's life would be as follows:
| Year 1 | $ |
105,000 |
| Year 2 | $ |
97,000 |
| Year 3 | $ |
95,000 |
| Year 4 | $ |
84,000 |
| Year 5 | $ |
81,000 |
| Year 6 | $ |
76,000 |
| Year 7 | $ |
70,000 |
What is the payback period?
Multiple Choice
-
5.92 years
-
6.13 years
-
3.77 years
-
3.50 years
Solutions
ekkarill92 answered 3 years agoRelated Solutions
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