Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. becker industries is considering investing in new

Becker industries is considering investing in new navigation system equipment for it trucking fleet. ...

80.2K

Verified Solution

Question

Accounting

Becker industries is considering investing in new navigation system equipment for it trucking fleet.
image
CHAPTER 10 - Journal Exercise Capital Budgeting Decisions Payback Period: Measure the time it takes to recoup an investment. EXERCISE 1: Becker Industries is considering investing in new navigation system equipment for its trucking fleet. The initial investment is $180,000 and is expected to result in unequal net cash flows over the next 8 years. The equipment is expected to have a salvage value of $20,000 at the end of its useful tife. Calculate the Payback period assuming the following net cash inflows: Year Amount invested Net Cash Inflows Accumulated 0 $180,000 1 $35,000 2 35,000 3 35,000 30,000 30,000 30,000 30,000 25,000 Salvage Value 20,000 TOTAL $270,000 $ 4 5 6 7 8 Payback occurs somewhere between years average of cash flows. and You can also calculate Payback using the $ Total cash inflows Divide by: 8 Average Amount Invested 78 $ S Net Cost of Investment Divide by: Average Amount Invested (ABOVE) Payback (round to two places beyond the decimal. 0.00) 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

General Management
1.2K views

Identify and describe the different schedules for delivering reinforcement. What should managers consider the most when...

Biology
1.2K views

Based on the tree below identify the false statement Salamander Lizard Goat C The lineage...

Biology
1.2K views

6 We can describe the sequence of the formation of a sedimentary rock as being...

Physics
1.2K views

Each of the wo identical magnets when suspended alone makes 30 oscillation per minute at...

Geometry
1.2K views

Find the central angle measure x for the Mystery slice in the circle graph Do...

Algebra
1.2K views

find the standard matrix for the reflection T of R 3 in the line x...

Algebra
1.2K views

Find the area of A RST if r 45 cm S 53 cm include and...

Accounting
1.2K views

You are considering investing in one of the following two bonds. Discuss your thought process...

Accounting
1.2K views

Describe the perpetual and the periodic inventory systems. How are they different

Accounting
1.2K views

Calculate the total Social Security and Medicare tax burden on a sole proprietorship earning 2017...

Accounting
1.2K views

Prepare a selling and administrative expenses budget for Screenshot Tops, Inc. for the year ending...

Accounting
1.2K views

On April 1, 2018, JS Co. sold equipment to JL Co. Service in exchange for...