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*Separation machine would replace an old work phase and increase this phases capacity with 10%. *The new equipment would cost 225 000 , and its
*Separation machine would replace an old work phase and increase this phases capacity with 10%.
*The new equipment would cost 225 000 , and its lifetime is estimated as 7 years.
*The increase in capacity would cause extra revenue of 60 000 per year.
*Based on this information, calculate the payback time.
*Is this project justified, if the companys maximum payback time is 4 years?
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