Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
The equal annual cash flows come out to be $6,400 when the payback period is 5.25 years and the cost of equipment is $33,600.
What is a payback period?
The payback period is a method of capital budgeting that tells about how many years the invested amount is recovered back.
Given values:
Payback period: 5.25 years
Cost of equipment: $33,600
Computation of equal annual cash flows:
[tex]\rm\ Equal \rm\ annual \rm\ cash \rm\ flows=\frac{\rm\ Cost \rm\ of \rm\ equipment}{\rm\ Payback \rm\ period} \\\rm\ Equal \rm\ annual \rm\ cash \rm\ flows=\frac{\$33,600}{5.25 years} \\\rm\ Equal \rm\ annual \rm\ cash \rm\ flows=\$6,400[/tex]
Therefore, when the investment in equipment is $33,600 and the payback period is 5.25 years then the annual cash flows come out to be $6,400.
Learn more about the payback period in the related link:
https://brainly.com/question/17110720
#SPJ1
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.
