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Builtrite is considering the purchase of a machine with the following cash flow diagram: year 0 spend $50,000 year 1 $15,000 year 2 $20,000 year 3 $20,000 year 4 $15,000 What is the payback period?
Builtrite is considering the purchase of a machine with the following cash flow diagram:
year 0 spend $50,000
year 1 $15,000
year 2 $20,000
year 3 $20,000
year 4 $15,000
What is the payback period?
Expert Solution
So, Payback Period is 2.75 years.
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