Solved: Substantial savings on printing costs, Finance Basics

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Substantial savings on printing costs

Question: Flash Company wants to purchase a new computer that will allow the company to do in-house printing rather than sub-contract the work out to a printer. The machine will cost $45,000. FLash also believes there will be substantial savings on printing costs over the five-year life of the machine.

Savings are anticipated at:

Year 1    $15,000
Year 2    $20,000
Year 3    $40,000

Calculate the payback period?

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Finance Basics: Substantial savings on printing costs

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Finance Basics: Substantial savings on printing costs

Reference No:- TGS01811983

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