Calculating payback period in the given case
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Marcus Company is considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual cash flows of $55,000 over its 10-year useful life. Annual depreciation will be $45,000. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)
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Solution Summary
The solution describes the steps to calculate payback period in the given case.
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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