A logistics firm is planning to acquire a winching machine which costs $85000 having life span of 6 years. It is estimated. that this winching machine will save around $20000 annually in labor costs. After the useful life span of the machine it can be sold for $10000 as a scrap. MARR for the firm is 10% . Find the payback period of the investment? 6 5 2 3

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which economist said that Capital consists
of stored up labour and capital
Wickshell
Marshall
Bohm- Bawerk
Irvin Fisher
Transcribed Image Text:Which economist said that Capital consists of stored up labour and capital Wickshell Marshall Bohm- Bawerk Irvin Fisher
A logistics firm is planning to acquire a
winching machine which costs $85000
having life span of 6 years. It is estimated.
that this winching machine will save around
$20000 annually in labor costs. After the
useful life span of the machine it can be
sold for $10000 as a scrap. MARR for the
firm is 10% . Find the payback period of the
investment?
6
5
2
3
Transcribed Image Text:A logistics firm is planning to acquire a winching machine which costs $85000 having life span of 6 years. It is estimated. that this winching machine will save around $20000 annually in labor costs. After the useful life span of the machine it can be sold for $10000 as a scrap. MARR for the firm is 10% . Find the payback period of the investment? 6 5 2 3
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