Marigold Corp. is considering the purchase of a piece of equipment and has complied the...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Marigold Corp. is considering the purchase of a piece of equipment and has complied the following information Onetime training cost Salvage value Useful life years Projected net annual cash flows over the project's life are: Marigold uses the cash payback method as an initial screening tool and has a policy that the payback period should not be more than half of the asset's useful life. Based on this, should Marigold move forward with further evaluation of the equipment purchase? Yes, because the cash payback period of years is less than the asset's year useful life of the asset. Yes, because the cash payback period of years is less than half of the asset's year useful life. No because the cash payback period of years is longer than half of the asset's year useful life. No because the cash payback years is longer than half of the asset's year useful life. 
Marigold Corp. is considering the purchase of a piece of equipment and has complied the following information
Onetime training cost
Salvage value
Useful life
years
Projected net annual cash flows over the project's life are:
Marigold uses the cash payback method as an initial screening tool and has a policy that the payback period should not be more than
half of the asset's useful life. Based on this, should Marigold move forward with further evaluation of the equipment purchase?
Yes, because the cash payback period of years is less than the asset's year useful life of the asset.
Yes, because the cash payback period of years is less than half of the asset's year useful life.
No because the cash payback period of years is longer than half of the asset's year useful life.
No because the cash payback years is longer than half of the asset's year useful life.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.