Question: A machine costs $5240 and produces benefits of $1000 at the end of each year for eight years. Assume continuous compounding and a nominal annual

A machine costs $5240 and produces benefits of $1000 at the end of each year for eight years. Assume continuous compounding and a nominal annual interest rate of 10%.

(a) What is the payback period (in years)?

(b) What is the breakeven point (in years)?

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a Payback Period At first glance payback would appear to be 52401000 524 yea... View full answer

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