What is the payback period

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Reference no: EM132036483

Use the following cash flow for 1a -1d

In year 0 you paid $50000 for a machine

In years 1 through 5 you made $10000 per year from the machine

In year 3 you had to pay an additional $10000 to keep the machine going

In year 5 you sold the machine for $20000

1a.Calculate the Present Worth (PW) at 10% interest.

1b.Calculate the Future Worth (FW) at 10% interest.

1c.Calculate the Annual Worth (AW) at 10% interest.

1d.What is the payback period?

Reference no: EM132036483

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