Current Attempt in Progress Pharoah Company is considering purchasing new equipment for $451,400. It is expected that the equipment will produce net annual cash flows of $61,000 over its 10-year useful life. Annual depreciation will be $45,140. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years
Current Attempt in Progress Pharoah Company is considering purchasing new equipment for $451,400. It is expected that the equipment will produce net annual cash flows of $61,000 over its 10-year useful life. Annual depreciation will be $45,140. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...
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![Current Attempt in Progress
Pharoah Company is considering purchasing new equipment for $451,400. It is expected that the equipment will produce net annual
cash flows of $61,000 over its 10-year useful life. Annual depreciation will be $45,140. Compute the cash payback period. (Round
answer to 1 decimal place, e.g. 10.5.)
Cash payback period
years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe767d496-9723-4139-977a-9a441266da6f%2Fe8d6c68b-2482-466d-9886-39c6f6e0dbf0%2Fyfllmym_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current Attempt in Progress
Pharoah Company is considering purchasing new equipment for $451,400. It is expected that the equipment will produce net annual
cash flows of $61,000 over its 10-year useful life. Annual depreciation will be $45,140. Compute the cash payback period. (Round
answer to 1 decimal place, e.g. 10.5.)
Cash payback period
years
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