Multiple Choice
The cost of a new machine is $250,000. The machine has a 3-year life and no salvage value. If the cash flow each year is equal to 40% of the cost of the machine, calculate the payback period for the project:
A) 2 years
B) 2.5 years
C) 3 years
D) Cannot be determined because of insufficient data
Correct Answer:
Verified
Correct Answer:
Verified
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