ABC Ltd is considering an investment in a machine that would cost pound 200,000, payable immediately. The machine has an expected life of 5 years. At the end of that time, it is estimated that the machine could be sold for pound 25,000. Operating profit before depreciation is as follows: Instead of making this investment, the business could make an alternative investment with similar risk and obtain a return of 24% a year. Assuming depreciation to be charged as per line method. The maximum expected payback period of the project is 4 years. ABC Ltd is considering an investment in a machine that would cost pound 200,000, payable immediately. The machine has an expected life of 5 years. At the end of that time, it is estimated that the machine could be sold for pound 25,000. Operating profit before depreciation is as follows: Instead of making this investment, the business could make an alternative investment with similar risk and obtain a return of 24% a year. Assuming depreciation to be charged as per line method. The maximum expected payback period of the project is 4 years