Compute the payback period for the machine

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Reference no: EM131212861

(Ignore income taxes in this problem.) Vander Company is considering purchasing a machine that would cost $454,140 and have a useful life of 8 years. The machine would reduce cash operating costs by $84,100 per year. The machine would have a salvage value of $107,130 at the end of the project.

Required:

a. Compute the payback period for the machine. (Round your answer to 2 decimal places.)

Payback period years

Reference no: EM131212861

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Compute the payback period for the machine : (Ignore income taxes in this problem.) Vander Company is considering purchasing a machine that would cost $454,140 and have a useful life of 8 years. The machine would reduce cash operating costs by $84,100 per year. Compute the payback period for th..

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