Question: The process for producing integrated circuit for computer mother board has a first cost of $500,000 (initial investment at year 0) with annual cost $80,000
The process for producing integrated circuit for computer mother board has a first cost of $500,000 (initial investment at year 0) with annual cost $80,000 and revenue of $270,000 per year starting 5 years from now. In year 6, $25000 was given to the company by Environmental Protection Agency as credit for its environmental compliance. What is the payback period at a) 0% b) 8%Given the two guesses for Payback Period to be between 4yrs and 5yrs at 8 % from the 5th year they started having expenses and revenue.
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