Pay-back rule for investments

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Reference no: EM131509252

NewCo has a 3 year pay-back rule for investments up to $40,000. Compute the pay-back period in years for the following and indicate whether the investment should be done:

Investment Cost Annual Incr. PAT Pay-back in Years? Decision?

Copier $5,000 $1,800

Delivery Car $26,000 $8,900

Machine to reduce Labor $32,000 $9,500

Reference no: EM131509252

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