Problem
A machine costs $5240 and produces benefits of $1000 at the end of each year for 8 years. Assume an annual interest rate of 10%.
(a) What is the payback period (in years)?
(b ) What is the breakeven point (in years)?
(c ) Since the answers in (a) and (b) are different, which one is "correct"?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.