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4. Your company has a 3 year pay-back rule for investments less than $20,000. You are analyzing a new forklift which will cost $11,265. This
4. Your company has a 3 year pay-back rule for investments less than $20,000. You are analyzing a new forklift which will cost $11,265. This new forklift will replace a much slower and less efficient model and should result in after-tax savings of $3,825/year. A. What is the payback period? B. If your estimates are correct, should your company buy the new forklift?
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