Calculate the payback period and discounted payback period

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Question - Greylag estimates the cost of the new equipment at $191,000. The equipment has a useful life of 9 years. Greylag expects cash fixed costs of $82,000 per year to operate the new? machines, as well as cash variable costs in the amount of 5% of revenues. Greylag evaluates investments using a cost of capital of 10?%.

Required - Calculate the payback period and the discounted payback period for this? investment, assuming Greylag expects to generate $150,000 in incremental revenues every year from the new machines.?

Reference no: EM133073128

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Calculate the payback period and discounted payback period : Greylag estimates the cost of the new equipment at $191,000. Calculate the payback period and the discounted payback period for this? investment
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