What is the payback period

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Reference no: EM134040278

Question

A machine costs $5240 and produces benefits of $1000 at the end of each year for 8 years. Assume an annual interest rate of 10%.

a. What is the payback period (in years)?

b. What is the breakeven point (in years)?

c. Since the answers in (a) and (b) are different, which one is "correct"?

Reference no: EM134040278

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