Putter Inc requires all capital investment projects to have a payback period of 4 years or less. Putter is currently considering an equipment purchase that has an initial cost of $80,000. The equipment is expected to have a six year life and a salvage value of $4,000. Assuming cash flows are equal, what does the annual cash flow generated by the equipment need to be in order to meet the payback
period requirements?
A) $19,000
B) $13,333
C) $21,000
D) $20,000
D
You might also like to view...
Members of ______ cultures are more likely to put money away in long-term savings plans.
A. future orientation B. humane orientation C. performance orientation D. feminine
Amortization is the allocation process of writing off bond premiums and discounts to interest expense over the life of the bond issue
Indicate whether the statement is true or false
The attributes a consumer considers important about a certain product are referred to as
A. the information set. B. product standards. C. the evoked set. D. consumer criteria. E. evaluative criteria.
In pursuing its goals, an organization does all of the following except:
A. Acquire resources. B. Engage in management team activities to make the best use of resources and people. C. Focus on reducing the budget. D. Hire personnel. E. Engage in an organized set of activities.