Question: Is it possible to find payback without tax for these set of numbers? payback period = initial invest/annual cash flow Alternative 1 Alternative 2 Alternative

Is it possible to find payback without tax for these set of numbers?

payback period = initial invest/annual cash flow
Alternative 1 Alternative 2 Alternative 3
Cost of New Machine $2,000,000 $3,500,000 $3,200,000
Estimated Useful Life 10 years 9 years 8 years
Operating Costs each year $100,000 $225,000 $90,000
Warranty covers years 1-4 ------ ------ ------
Maintenance Years 5-10 $20,000 $50,000 $60,000
Training for employees $10,000 $0 $20,000
Expected revenues generated years 1-3 $500,000 $550,000 $450,000
Expected revenues generated years 4-6 $400,000 $400,000 $300,000
Expected revenues generated years 7-10 $250,000 $250,000 $200,000
Estimated Salvage Value $30,000 $40,000 $20,000

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