Problem related to purchase of a new piece of equipment

Reference no: EM13146980

Marchand Corp is considering the purchase of a new piece of equipment, which would have an initial cost of $500,000, a 7 year life, and $150,000 salvage value. The increase in cash flow each year of the equipment's life would be as follows:

What is the payback period?

a. 5.51 years

b. 5.97 years

c. 6.00 years

d. 6.18 years

Reference no: EM13146980

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