Solution-Determine the payback period for the machines

Determine the payback period for the machines

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Reference no: EM132639473

Problem 1: May company is evaluating an investment proposal to acquire the new machine to be used in its manufacturing operations. The machines cost 60,000 each, inclusive of the value added tax of 10%. There is 3,000 total installation cost for the machines. The useful life of the machines is 5 years, no salvage value. Annual net cash savings from the two machines is 20,000. Determine the payback period for the machines.

Reference no: EM132639473

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Determine the payback period for the machines

Reference no: EM132639473

Reference no: EM132639473

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