Explain what does annual cash flow generated by equipment


Vinson Manufacturing requires all capital investment projects to have a payback period of 5 years or less. Vinson is currently considering an equipment purchase that has an initial cost of $90,000. The equipment is expected to have a ten year life and a salvage value of $5,000. Assuming cash flows are equal, what does the annual cash flow generated by the equipment need to be in order to meet the payback period requirements?

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Accounting Basics: Explain what does annual cash flow generated by equipment
Reference No:- TGS0703003

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