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Rihanna Company is considering purchasing new equipment for $452,400. It is expected that the equipment will...

Rihanna Company is considering purchasing new equipment for $452,400. It is expected that the equipment will produce net annual cash flows of $58,000 over its 10-year useful life. Annual depreciation will be $45,240. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years

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Answer #1

Answers :Cash Payback Period = 7.8 Years

Cash Payback Period is the time Period Required to Collect the investment

Cash Payback Period = Investment / Annual net Cash Flows = $ 452,400 / 58,000 = 7.8 YEars

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