Find the payback for investment

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Reference no: EM13258144

George Williams buys a machine for his business. The machine costs $150,000. George estimates that the machinecan produce $40,000 cash inflow per year for the next fiveyears. George's cost of capital is 10 percent. What is the payback for this investment?

(a) 1.25 years.

(b) 3.75 years.

(d) 9.43 years.

Reference no: EM13258144

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