Calculate the payback period for each case

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Problem - Payson Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $1,200,000 and either has (a) even cash flows of $300,000 per year or (b) the following expected annual cash flows: $150,000, $150,000, $400,000, $400,000, and $100,000.

Required - Calculate the payback period for each case.

Reference no: EM132874579

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