What is the payback period for this investment

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Reference no: EM131223621

Reinhart company would like to purchase a new machine for $5,000,000. The machine is expected to have a life of 5 years and a salvage value of $1,000,000. Annual maintenance costs will total $300,000, annual labor and material saving are predicted to be $2,000,000. The company's required rate of return is 26%. What is the payback period for this investment(rounded to the nearest months)?

Reference no: EM131223621

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