What is the payback period for actol ltd

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Question 1: Actol Ltd, a printing business, intends to purchase a new computerised printing machine for $800,000. The annual cash flows are expected to increase by $150,000 per year. The machine has an eight-year useful life. What is the payback period?

Option 1: 6 years

Option 2: 5.33 years

Option 3: 5 years

Option 4: 8 years

Reference no: EM132650786

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