contestada

durham electric motors is considering replacing an existing piece of equipment that, if not replaced immediately, will require major repair and overhaul costing $57,000 in three years. the remaining life of the existing equipment is eight years and the new equipment will also have a useful life of eight years. if the existing equipment is not replaced immediately it will have an estimated salvage value of $7,500 at the end of its life. when analyzing cash flows associated with the new equipment purchase, durham should

Respuesta :

Durham should include $7,500 as cash inflow in the eighth year.

What is cash inflow?

Money coming into a business is known as cash inflow, and it may come through sales, investments, or financing. The reverse of a cash outflow is a cash inflow, which is money entering a business. The capacity of a corporation to produce positive cash flows determines its potential to create value for shareholders. The phrase "cash flow" is typically used to represent payments that are anticipated to occur in the future, are thus unknown, and as a result need to be projected using cash flows; a cash flow in its restricted sense is a payment (in a currency), especially from one central bank account to another.

To learn more about cash inflow click,

https://brainly.com/question/735261

#SPJ1

Otras preguntas