Calculate the values and the payback period

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A machine costs $5,240 and generates an annual end-of-year benefit of $1,000 for 8 years. If a nominal annual interest rate of 9.532% with continuous compounding is assumed, calculate the following values:

(a) the payback period and

(b) the breakeven point in years, at which the purchase price equals the present value of the benefits received.

Reference no: EM13746721

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