Suppose you are considering buying a machine that costs $7,000. It will generate revenues of $1,500 for the next 3 years, and then $1,000 for the following 5 years. What is the payback period of this investment? The best way to calculate the payback period is to calculate the cumulative cash flows. 

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Answer To calculate the payback period of the investment in the machine we need to find the ti... View the full answer