Payback period check 16062020 - Protected View - Saved to this PC Layout References Mailings Review View Help ernet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Class Check/Payback Period Q1: Nova Products has a 5-year maximum acceptable payback period. The firm is considering the purchase of a new machine and must choose between two alternative ones. The first machine requires an initial investment of $14,000 and generates annual after-tax cash inflows of $3,000 for each of the next 7 years. The second machine requires an initial investment of $21,000 and provides an annual cash inflow after taxes of $4,000 for 20 years. a. Determine the payback period for each machine. Payback period for machine A: Initial investment: 14000 S 1. 3000 2. 3000 6000 3. 3000 9000 12000 4.3000 5. 3000 4+ 2000/3000-4.67 years