A new bottling machine will cost $25,000 initially. The machine will produce after-tax cash flows of $4,000 in the first year and $8,000 each year thereafter for 4 years. Your company's cost of capital is 7%.   What is the payback period for this project?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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A new bottling machine will cost $25,000 initially. The machine will produce after-tax cash flows of $4,000 in the first year and $8,000 each year thereafter for 4 years. Your company's cost of capital is 7%.

 

What is the payback period for this project?

 

 

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