Replace its conveyor belt system

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Reference no: EM13730465

The Easton manufacturing Company is looking to replace its conveyor belt system. A new system will cost $345,000, and will result in cost savings of $220,000 in the first year, followed by savings of $100,000 per year over the following 3 years. If the firm’s cost of capital is 9%, the discounted payback period for this project is closest to

2.40 years.

2.25 years.

2.58 years.

2.76 years.

Reference no: EM13730465

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