Sullivan Company is considering the purchase of a new machine costing $80 000. Sullivan's management is estimating that the new machine will generate additional cash flows of $12 000 a year for ten years and have a salvage value of $3 000 at the end of ten years. What is the machine's payback period?

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The Answer of Sullivan Company is considering the purchase of a new machine costing $80 000. Sullivan's management is estimating that the new machine will generate additional cash flows of $12 000 a year for ten years and have a salvage value of $3 000 at the end of ten years. What is the machine's payback period?

Sullivan Company Is Considering the Purchase of a New Machine