Birch manufacturing is considering the addition of another product line to its offerings. Equipment needed to produce

Question:

Birch manufacturing is considering the addition of another product line to its offerings. Equipment needed to produce the new line will cost $198,300. Birch estimates that the net cash inflows from the new product line will be as follows: Years 1-10 $17,480 (each year) Years 11-15 $4,700 (each year) Year 16-20 $2,120 Collapse question part (a) What is the for the new product line?
Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...