00:01
Okay, so we're going to be looking at a cash payback period and it's going to be important to analyze the information that is provided.
00:09
So we are looking at a cash payback period.
00:20
All right.
00:22
So the information that is provided in this particular instance is that's the cost of this equipment that has been bought is worth $1 .4 million.
00:35
Hundred dollars, $1 .4 ,100 ,000.
00:42
And we also given information pertaining to the useful life of this equipment, and it is 10 years, and that the annual net income, we're going to be looking at the net income.
01:00
The annual net income is given as $90 ,000.
01:01
And that the, we're going to be looking at the net income.
01:01
The annual net income is given as $90 ,000.
01:12
And that depreciation expense is given as $140 ,000.
01:26
Okay, so to get the payback period, we simply need to divide the cost...