Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume that a company buys a new machine for $220,

Assume that a company buys a new machine for $220,000 that has a useful life...

50.1K

Verified Solution

Question

Accounting

Assume that a company buys a new machine for $220,000 that has a useful life of five years and a $20,000 salvage value. The new machine will replace an old machine that can be sold for a salvage value of $10,000. The machine will generate incremental contribution margin of $65,625 per year. The only fixed expense associated with the new machine is its annual depreciation of $40,000 per year. What is the payback period for this investment?

Multiple Choice

3.2 years

10.2 years

3.167 years

9.2 years

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

Finance
1.2K views

A 7.10 percent coupon bond with 21 years left to maturity is priced to offer a...

Psychology
1.2K views

a) State an attitude you have towards a thing (e.g., a holiday, sports car, movie, etc.) or...

Statistics
1.2K views

Let’s supposed that we want to choose a random sample of library books. There are four...

Accounting
1.2K views

1. Barker Industries issued 3 000 $1,000 bonds at 105. Each bond contains 20 detachable stock...

Biology
1.2K views

What is the author trying to convey through the following detail in the book -The...

Physics
1.2K views

Which of the following curves correctly represents the variation of capacitive reactance Xc with frequency...

Geometry
1.2K views

The given function models the displacement of an object moving in simple harmonic motion y...

Basic Math
1.2K views

Which of the following is the complete factorization of the polynomial belowx+x-17x+15A. (x+5)(x-3)(x-1)B. (x-5)(x+3)(x-1)C. (x+5)(x+3)(x+1)D....

Algebra
1.2K views

Find the future value if 56 780 is invested and compounded continuously at 5 3...

Accounting
1.2K views

Financial Ratio Report Using data from the Finkler Nursing Home (pages 136 to 138), students...

Accounting
1.2K views

Problem 8-23 Schedule of Expected Cash Collections; Cash Budget [LO8-2, LO8-8] The president of the...

Finance
1.2K views

Please Solve it as soon as possible Thank you , PLEASE ANSWER...