Solution-Compute the recovery time

Compute the recovery time

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Reference no: EM132963672

Problem - The customer would have his or her foot scanned by digital computer equipment; this information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $108,000 and is expected to generate an additional $41,000 in cash flows for five years. A bank will make a $108,000 loan to the company at a 10% interest rate for this equipment's purchase. Compute the recovery time for both the payback period and break-even time.

Reference no: EM132963672

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Compute the recovery time

Reference no: EM132963672

Reference no: EM132963672

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