Heidi Company is considering the acquisition of a machine that costs $596,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $121,000, and annual operating income of $86,546. The estimated cash payback period for the machine is (round to one decimal point)? a.4.9 years b.6.9 years c.6.0 years d.7.5 years

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
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Heidi Company is considering the acquisition of a machine that costs $596,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $121,000, and annual operating income of $86,546. The estimated cash payback period for the machine is (round to one decimal point)?

a.4.9 years
b.6.9 years
c.6.0 years
d.7.5 years
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