The cost of a new machine is $250,000. The machine has a five-year life and no salvage value. If the cash flow each year is equal to 25% of the cost of the machine, calculate the payback period for the project:
Added by Sean E.
Step 1
Given that the cash flow each year is equal to 25% of the cost of the machine, which is $250,000, the annual cash flow is 25% * $250,000 = $62,500. ** Show more…
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