asked 122k views
2 votes
Calculate the payback period for the following investment: A machine costs $100,000 with installation costs of $15,000. Cash inflows are expected to be 26,000 per year for the next seven years. greater than

A. 6 years.
B. 3.85 years
C. 5 years
D. 4.42 years

1 Answer

7 votes

Answer:

D. 4.42 years

Step-by-step explanation:

115000 = 26000x

115000/26000 = x

4.42 = x

answered
User Bhargav Jhaveri
by
7.3k points
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