A firm is considering the purchase of a $30,000 machine that would save labour costs of $5000 per year in the first three years and $6000 per year for the next four years. Will the firm purchase the machine if the payback requirement is:
a) Five years?
b) Six years?

Question

A firm is considering the purchase of a $30,000 machine that would save labour costs of $5000 per year in the first three years and $6000 per year for the next four years. Will the firm purchase the machine if the payback requirement is:
a) Five years? 
b) Six years?

Quizplus · Accepted Answer

The Answer of A firm is considering the purchase of a $30,000 machine that would save labour costs of $5000 per year in the first three years and $6000 per year for the next four years. Will the firm purchase the machine if the payback requirement is:
a) Five years? 
b) Six years?

A Firm Is Considering the Purchase of a $30,000 Machine