A company is planning to invest in a machine that costs $3,780 at time = 0. The expected annual after-tax cash flows from the machine are $500 each year for 10 years. What is the payback period? Round your answer to two decimal points.

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Chapter11: Capital Budgeting Decisions
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A company is planning to invest in a machine that costs $3,780 at time =
0. The expected annual after-tax cash flows from the machine are $500
each year for 10 years. What is the payback period? Round your answer
to two decimal points.
Transcribed Image Text:A company is planning to invest in a machine that costs $3,780 at time = 0. The expected annual after-tax cash flows from the machine are $500 each year for 10 years. What is the payback period? Round your answer to two decimal points.
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