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Find the payback for investment

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George Williams buys a machine for his business. The machine costs $150,000. George estimates that the machinecan produce $40,000 cash inflow per year for the next fiveyears. George's cost of capital is 10 percent. What is the payback for this investment?

(a) 1.25 years.

(b) 3.75 years.

(c) 5 years.

(d) 9.43 years.

Reference no: EM13258144

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