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A machine with an initial purchase price of $29100 has a useful life of 10 years. The usage of this machine is forecasted to bring

A machine with an initial purchase price of $29100 has a useful life of 10 years. The usage of this machine is forecasted to bring us the savings in the table below. At an interest rate of 0% how many years will it take to payback the investment?

Year

1

2

3

4

5

6

7

8

9

10

Savings, $

7000

9000

5000

3000

4000

6000

5000

6000

4000

7000

1-2 years

2-3 years

3-4 years

4-5 years

5-6 years

6-7 years

7-8 years

8-9 years

More than 8 years

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