Solution-Determining the acceptance period

Determining the acceptance period

Reference no: EM131113899

Medianite Manufacturing bought a new machine for $2,538,966. The company expects additional cash flows from the machine of $950,225, $1,058,436, and $1,491,497 over the next three years. What is the payback period for this project? If their acceptance period is 2.5 years, will this project be accepted?

a. 4.17 years; yes

c. 2.36 years, yes

b. 4.17 years; no

d. 3.83 years; no

Reference no: EM131113899

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Determining the acceptance period

Reference no: EM131113899

Reference no: EM131113899

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