Apex Corp. is planning to buy a production machine costing $100,000. This machine's expected useful life is 5 years, with no residual value. Apex uses a discount rate of 10% and has calculated the following data pertaining to the purchase and operation of this machine:

Year Estimated Annual Net Cash Inflow

1. $50,000

2. $40,000

3. $20,000

4. $20,000

5. $20,000

What is the payback period for this investment?

Answer rating: 100% (QA)

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