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Q2: (24 marks) A company decided to purchase a Production Line with the following information, Iri=8% 1) Determine the discounted payback period for this Production

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Q2: (24 marks) A company decided to purchase a Production Line with the following information, Iri=8% 1) Determine the discounted payback period for this Production Line (14 marks) 2) If the Annual Income is X, What would be the value of X that makes this production line breakeven. (10 marks) Items Machine information Capital Cost $12,000 Annual Income $4,000 Annual operation and maintenance $200 Useful life 10 years Salvage value $2,000

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