The Lake Construction Company is considering an investment of R150,000 for earth moving machine is expected to generate annual cash inflow of R80,000 for 6 years. Annual maintenance cost of the machine amount to R12.500. The scrap value of the machine at the end of the useful is R10,500. The opportunity cost of capital is 12%. No depreciation was considered. The company uses the straight-line method. Company tax is 25% Determine the payback period. The Lake Construction Company is considering an investment of R150,000 for earth moving machine is expected to generate annual cash inflow of R80,000 for 6 years. Annual maintenance cost of the machine amount to R12.500. The scrap value of the machine at the end of the useful is R10,500. The opportunity cost of capital is 12%. No depreciation was considered. The company uses the straight-line method. Company tax is 25% Determine the payback period.