Question
An excavation company just bought a new machine at a cost of $250,000 to replace one of the machines in their fleet. The old
An excavation company just bought a new machine at a cost of $250,000 to replace one of the machines in their fleet. The old machine has been sold for $165,000, and the annual savings through improved efficiency will be $25,000 the first year, $35,000 the second year, and $45,000 in years three and four, after which time the company will re-evaluate the situation. What is the payback period for this investment scenario?
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
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