Question: J&M Manufacturing plans on purchasing a new assembly machine for $32,000 to automate one of its current manufacturing operations. It will cost an additional $4,500

J&M Manufacturing plans on purchasing a new assembly machine for $32,000

J&M Manufacturing plans on purchasing a new assembly machine for $32,000 to automate one of its current manufacturing operations. It will cost an additional $4,500 to have the new machine installed. With the new machine, J&M expects to save $12,000 in annual operating and maintenance costs. The machine will last six years with an expected salvage value of $4,000. .... (a) How long will it take to recover the investment (plus installation cost)? The payback period is 3 years. (Round up to the nearest whole number.)

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