# The company estimates that its cost of capital is 14%. Calculate the payback period for Machine A and B (answers

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## Question:

The company estimates that its cost of capital is 14%.

Calculate the payback period for Machine A and B (answers must be expressed in years, months

and days).

2.1 (5 marks)

Calculate the accounting rate of return (on average investment) for Machine A. (answer rounded off

to 2 decimal places)

**Related Book For**

## Essentials of corporate finance

ISBN: 9780073405131

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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