heidi company is considering the acquisition of a machine that costs $428,400. the machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $119,000, and annual operating income of $70,000. what is the estimated cash payback period for the machine (round to one decimal point)?

Respuesta :

The expected monetary payback period for equipment is 3.6 years, according to the announcement.

What are the 3 types of income?

These three fundamental kinds of income are earned, passive, and portfolio. Salary, tips, sales, and wages are all examples of earned money. Potential passive or undeserved sources of income include limited partnerships, rental properties, and royalties. Investment can come in the form of interest, dividends, or capital gains on assets. It might be difficult to understand how each form of income is taxed, and you might use internet income tax calculator to do so.

Briefing:

The following is the payback period formula:

Initial investment minus annual cash flows equals payback period.

Annually operating income is just provided as a diversion in the inquiry.

payback period = $428,400 ÷ 119,000

payback period =3.6years.

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