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Beacon Company is considering automating its production facility. The initial investment in automation would be $ 6 . 6 1 million, and the equipment has
Beacon Company is considering automating its production facility. The initial investment in automation would be $ million, and the equipment has a useful life of years with a residual value of $ The company will use straightline depreciation. Beacon could expect a production increase of units per year and a reduction of percent in the labor cost per unit. Required: Determine the project's payback period. Note: Round your answer to decimal places. Payback period years
Beacon Company is considering automating its production facility. The initial investment in automation would be $ million, and the equipment has a useful life of years with a residual value of $ The company will use straightline depreciation. Beacon could expect a production increase of units per year and a reduction of percent in the labor cost per unit.
Required:
Determine the project's payback period.
Note: Round your answer to decimal places.
Payback period
years
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