Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Carson company is investing in a new machine that costs $200,000. The new machine generates cash flows of $150000 for each of the next 3
Carson company is investing in a new machine that costs $200,000. The new machine generates cash flows of $150000 for each of the next 3 years. Carson uses a discount rate of 10%. what is the payback in years?
a 1 b 1.25 c 1.33 d 2
Do we have to consider the discount?
My answer
200000/150000
=1.33
Can some one help with explanation?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started