What is the machines payback period

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Reference no: EM13827388

Caliber Lawnmower Company is considering the purchase of a new machine costing $800,000. The company’s management is estimating that the new machine will generate additional cash flows of $180,000 a year for 10 years and have a salvage value of $50,000at the end of 10 years. What is the machines payback period?

A) 5.33 years

B) 3.33 years

C) 6.77 years

D) 4.44 years

Reference no: EM13827388

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