Homework Answers
Annual cash inflow = $209,500
Annual cash outflow = $91,000
Net increase in annual cash inflow = Annual cash inflow - Annual cash outflow
= 209,500-91,000
= $118,500
Cash pay back period = Cost of machine / Net increase in annual cash inflow
= 432,525/118,500
= 3.65 years
Kindly comment if you need further assistance. Thanks‼!
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8 years
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