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What is the machine's payback period?

What is the machine's payback period?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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וםשבם الإجابة. 1 כןבב 3 Jlgul Caliber Lawnmowers is considering the purchase of a new machine costing $814,000. The company's management is estimating that the new machine will generate additional cash flows of $194,000 a year for ten years and have a residual value of $52,000 at the end of ten years. What is the machine's payback period? (.(Round your answer to two decimal places years 3.33 .A years 6.37 .B years 5.22 years 4.20 .D O
Transcribed Image Text:וםשבם الإجابة. 1 כןבב 3 Jlgul Caliber Lawnmowers is considering the purchase of a new machine costing $814,000. The company's management is estimating that the new machine will generate additional cash flows of $194,000 a year for ten years and have a residual value of $52,000 at the end of ten years. What is the machine's payback period? (.(Round your answer to two decimal places years 3.33 .A years 6.37 .B years 5.22 years 4.20 .D O
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