Question
Your mill produces 5,000,000 tonnes per year of pulp per year and you are considering adding a Super Calendar machine. The new machine costs $8,000,000
Your mill produces 5,000,000 tonnes per year of pulp per year and you are considering adding a Super Calendar machine.
The new machine costs $8,000,000 and would increase Super Calendar to 10%.
Super Calendar paper sells for $15 per tonne more than the NBSK price.
What is the payback period?
How much SC paper would you need to cover the cost of the new machine?
Step by Step Solution
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Step: 1
To calculate the payback period we need to divide the initial investment by the annual cash inflow g...
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
