Difference in payback and discounted payback of the machine

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A company is considering buying a machine that would give a net cost savings of $70,000 per year for 10 years. The cost of the machine is $325,000. The company's weighted average cost of capital is 12%.

What is the difference in payback and discounted payback of the machine?

Reference no: EM13950228

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Difference in payback and discounted payback of the machine : A company is considering buying a machine that would give a net cost savings of $70,000 per year for 10 years. The cost of the machine is $325,000. The company's weighted average cost of capital is 12%. What is the difference in payback and discounte..

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