12. We invest $100,000 in a labor-saving machine that will make our production more efficient. Taking into account the increased cost of energy and maintenance and the decreased cost of labor, we expect to have net cash flow of $20,000 per year and depreciation of $7,500 per year. What is the Payback Period?______________

Please explain your answer Type your answer and explanation here:

Question 13: Read question 12 again. What is the difficulty here. Explain your understanding of Net Cash Flow.