Newport Corp. is considering the purchase of a new equipment. The cost savings from the equipment would result in an annual increase in cash flow of $200,000. The equipment will have an initial cost of $900,000 and have a 6-year life. There is no savage value for the equipment. What is the payback period ?

No come or of a new Diece of equipment. The cost savingstrom the equipment wordt in unumlines in cash fow of 200000. The compete winevenit cost of 100.000 and have you e There is no sava ve hement What is the payback period 27 so