Buller Manufacturing Is Considering Acquiring Another Facility for a Cost

question 8

Short Answer

Buller Manufacturing is considering acquiring another facility for a cost of $610,000. The required payback period is 4.5 years. Assume annual net cash inflows are $150,000 for the first two years and $125,000 for years 3 and 4. What must the inflow be in the fifth year to meet the 4.5 year payback period?

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Definitions:

Core Job Characteristics

Fundamental attributes of a job that affect employee motivation and job satisfaction, including skill variety, task identity, task significance, autonomy, and feedback.

Fixed Price

A pricing strategy where the cost of a product or service is not subject to change under any circumstances.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency and labor productivity.

20th Century

Refers to the period from 1901 to 2000, characterized by significant advancements in technology, science, and social changes globally.