How do determine what payback period is

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Reference no: EM132639467

A new machine is expected to produce the following after-tax cash inflows over a period of 5 years:

After-Tax Cash Inflows

Year      Per Year      Cumulative

1          16,000           16,000

2           12,000          28,000

3           20,000        48,000

4           8,000          56,000

5            6,000          62,000

Problem 1: If the machine will cost 40,000, its payback period is

Reference no: EM132639467

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