Sandhill, Inc., is purchasing machinery at a cost of $ 3,544,720. The company's management expects the machinery to produce cash flows of $ 1,219,410, $ 1,277,160, and $ 1,705,150 over the next three years, respectively. What is the payback period? (Round answer to 2 decimal places, eg. 15.25.)

Sandhill, Inc., is purchasing machinery at a cost of $ 3,544,720. The company's management expects the machinery to produce cash flows of $ 1,219,410, $ 1,277,160, and $ 1,705,150 over the next three years, respectively. What is the payback period? (Round answer to 2 decimal places, eg. 15.25.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EA: Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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Sandhill, Inc., is purchasing machinery at a cost of $ 3,544,720. The company's management expects the machinery to produce cash
flows of $ 1,219,410, $ 1,277,160, and $ 1,705,150 over the next three years, respectively. What is the payback period? (Round answer
to 2 decimal places, e.g. 15.25.)
Payback period is
years

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