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Payback period for an asset

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Determine the payback period for an asset that has a first cost of $40,000, a salvage value of $8000 anytime within 10 years of its purchase, and generates income of $6000 per year. The required return is 8% per year.
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The response provides the steps to compute the payback period for an asset.

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Determine the payback period for an asset that has a first cost of $40,000, a salvage value of $8000 anytime within 10 years of its purchase, and generates income of $6000 per year. The required return is 8% per year.

Payback period is the period in ...

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