Bridgett's Beauty Spa needs to purchase a new extra deluxe machine to implement spa services.The initial investment on this new ultra jacuzzi is $85,000.The machine is expected to generate $65,000 in uniform cash flow each year and it has a five-year expected useful life.
Required
Compute the payback period.
A) 1 year
B) 1.31 years
C) 1.51 years
D) 1.61 years
E) 1.71 years
Correct Answer:
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