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What is the payback period on this project

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Problem - The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $1,400,000. The manager believes that the new investment will result in direct labor savings of $350,000 per year for 10 years.

Required -

a. What is the payback period on this project?

b. What is the net present value, assuming a 10% rate of return?

c. What else should the manager consider in the analysis?

Reference no: EM132717937

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