Marple Industries Is Evaluating a Capital Project with a Net

question 134

Short Answer

Marple Industries is evaluating a capital project with a net initial investment of $120,000.The project is expected to generate net cash inflows of $15,000 each year.Calculate the payback period for the project.

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Definitions:

Forge

To form or shape metal objects by heating and hammering, or to create or produce something with skill and careful attention.

For Deposit Only

An endorsement on a check specifying that the check must be deposited into an account and cannot be cashed directly.

Negotiation

The process of discussing things with others to reach an agreement, compromise, or settlement.

Order

An authoritative command, direction, or instruction, typically issued by a court or by someone in a position of power.