A plastic molding company invested $1,200,000 in a new injection machine. The company earns a monthly net income of $30,000 from this investment. If the company requires a minimum acceptable rate of return of 15% per year, compounded monthly, what is the equivalent payback period for this investment?

A plastic molding company invested $1,200,000 in a new injection machine. The company earns a monthly net income of $30,000 from this investment. If the company requires a minimum acceptable rate of return of 15% per year, compounded monthly, what is the equivalent payback period for this investment?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...

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