Problem 2 Required:Compute the average annual cash inflows. (20 points) Compute the payback period u
Problem
2
Required:Compute the average annual
cash inflows. (20 points)
Compute the payback period using the accumulation method. (20 points)
(40 points total)
2013
2014
2015
2016
2017
Incremental revenue
6,000
2,000
4,000
2,000
1,000
Cost of new machine
12,000
Problem
1
Required: In the
space below, describe the net present value method of capital budgeting.