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Question #2 A new Xerox copier costing $400,000 has a life of 5 years with no salvage value. The facility will generate the following annual

Question #2 A new Xerox copier costing $400,000 has a life of 5 years with no salvage value. The facility will generate the following annual cash flows: Year Cash Flows 1 $120,000 2 $160,000 3 $200,000 4 $240,000 5 $280,000

Part A - Compute the payback period.

Part B What are the disadvantages of using the payback period to analyze this investment?

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