Bellamy Company is considering the purchase of a computerized manufacturing system. The after-tax cash benefits/savings associated with the system are as follows:
The system will cost $9,000,000 and will last ten years. The company's cost of capital is 12 percent.
What is the payback period for the computerized manufacturing system?
A) 6.00 years
B) 10.00 years
C) 11.25 years
D) 15.00 years
Correct Answer:
Verified
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