Question: Using straight payback as the decision model. The company has a rule any asset purchased must have a payback period not to exceed 5 years

Using straight payback as the decision model. The company has a rule any asset purchased must have a payback period not to exceed 5 years the machine costs $300,000 and has an expected useful life of 15 years. If the use of the machine will result in an increased profit (cash flows) of $75,000 what should the company's capital budgeting analysis show?

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