Multiple Choice
Phoxco is considering automating its production line. It will cost $40,000 to acquire the necessary equipment. The annual cost savings are expected to be $8,000 per year for 14 years.. The firm requires a 20% return.
Ignoring income taxes, what is the payback period?
A) 3 years
B) 4.2 years
C) 5 years
D) 6 years
Correct Answer:
Verified
Correct Answer:
Verified
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