What is the payback period

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Reference no: EM131809437

A machine costs $5240 and produces benefits of $1000 at the end of each year for 8 years. Assume an annual interest rate of 10%.

(a) What is the payback period (in years)?

(b) What is the breakeven point (in years)?

(c ) Since the answers in (a) and (b) are different, which one is "correct"?

Reference no: EM131809437

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