Question: For the table, it's the annual machine maintenaince expense For Years 1 _ 2000 2_3000 3_3000 4_4000 5_4000 Thanks A manufacturing equipment investment of $150,000
For the table, it's the annual machine maintenaince expense
For Years
1 _ 2000
2_3000
3_3000
4_4000
5_4000
Thanks
A manufacturing equipment investment of $150,000 is expected to generate the following cash flows over the next five years: Add'l Yr Cost Annua Cash Saving machin mainter Expense $2,000 Sales $30,000 $5,000 1 40,000 5,000 2 3,000 3 40,000 8,000 3,000 4,000 4,000 4 50,000 10,000 5 50,000 10,000 Required: A. Draw a cash flow timeline for the proposal. B. Compute payback period of the investment. C. Should the investment be made if management wants to recover the initial investment in 2 years or less
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