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Salam Corporation purchased a vibratory finishing machine for $25,000 in year 0. The useful life of the machine is 10 years, at the end of
Salam Corporation purchased a vibratory finishing machine for $25,000 in year 0. The useful life of the machine is 10 years, at the end of which the machine is estimated to have a salvage value of 5,000 after 10 years. The machine generates net annual benefits of $5,000.The Conventional and Discounted Payback Period If SALAMs MARR (rate of return) is 12%, will be following?
Conventional Pay Back of 6 years & Discounted Pay Back of 9 years
Conventional Pay Back of 4.5 years & Discounted Pay Back of 9 years
Conventional Pay Back of 5.5 years & Discounted Pay Back of 6.5 years
None of these
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