Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a piece of equipment costs $30,000, and is expecte

A piece of equipment costs $30,000, and is expected to generate $8,500 of annual cash...

90.2K

Verified Solution

Question

Accounting

A piece of equipment costs $30,000, and is expected to generate $8,500 of annual cash revenues and $1,500 of annual cash expenses. The disposal value at the end of the estimated 10-year life is $3,000. Ignoring income taxes, the payback period is:

3.53 years

3.86 years

4.29 years

6.98 years

some other period of time not noted

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students