lbride Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an

Question:

lbride Manufacturing is considering an investment in a new automated manufacturing system.
The new system requires an investment of $3,000,000 and either has:
a. Even cash flows of $750,000 per year or
b. The following expected annual cash flows: $375,000, $375,000, $1,000,000, $1,000,000, and $250,000.
Required:
Calculate the for each case.
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,...