Your mill produces 5,000,000 tonnes per year of pulp per year and you are considering adding a

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Your mill produces 5,000,000 tonnes per year of pulp per year and you are considering adding a Super Calendar machine.

The new machine costs $8,000,000 and would increase Super Calendar to 10%.

Super Calendar paper sells for $15 per tonne more than the NBSK price.

What is the payback period?

How much SC paper would you need to cover the cost of the new machine?

Related Book For answer-question

Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Posted Date: Mar 30, 2023 11:59 PM

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Your mill produces 5,000,000 tonnes per year of pulp per year and you are considering adding a

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To calculate the payback period we need to divide the initial investment by the annual cash inflow g... View the full answer

Finance Applications and Theory

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