What is the payback period for the investment


Question: Martin Corporation is considering an investment in new equipment costing $ 150000. The equipment will be depreciated on a straight - line basis over a five - year life and is expected to generate net cash inflows of $ 55000 the first? year, $ 20000 the second? year, and $ 82000 every year thereafter until the fifth year. What is the payback period for this? investment? The equipment has no residual value

 

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Accounting Basics: What is the payback period for the investment
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