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What is the payback period

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Question - Your mill produces 1,000,000 tonnes per year of pulp per year and you are considering adding a Super Calendar machine. The new machine costs $8,000,000 and would increase Super Calendar to 10% of the production volume.  The inputs and production costs are the same but Super Calendar paper sells for $15 per tonne more than the NBSK price.

Required -

What is the payback period?

How much SC paper would you need to cover the cost of the new machine?

Reference no: EM133138044

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