What is the estimated cash payback period

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Q1. Hayden Company is considering the acquisition of a machine that costs $579,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $100,000, and annual operating income of $85,000. What is the estimated cash payback period for the machine (round to one decimal points)?

6.8 years

8.0 years

1.2 years

5.8 years

Q2. The amount of the estimated average income for a proposed investment of $90,000 in a fixed asset, giving effect to depreciation (straight-line method), with a useful life of 4 years, no residual value, and an expected total income yield of $25,300, is

a.$6,325

b.$25,300

c.$12,650

d.$45,000

Reference no: EM131725207

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