Payback period
Not what you're looking for?
Company x is purchasing a new machine for $5,000. Useful life 5 years no salvage value. Will increase cash flows by $2,000 annually for 5 years. Company X uses straightline depreciation. Required rate of return 10%. What is the payback period?
A 5 years
B 2.5 years
C 7.58 years
D 8.34 years.
Purchase this Solution
Solution Summary
The solution explains how to calculate the payback period
Solution Preview
Payback period is the time taken to recover the initial investment. The ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.