Payback Period Payson Manufacturing is considering an investment in a new automated manufacturing system. The...
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Accounting
Payback Period
Payson Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $1,200,000 and either has:
Even cash flows of $800,000 per year or
The following expected annual cash flows: $150,000, $150,000, $400,000, $400,000, and $100,000.
Required:
Calculate the payback period for each case. Round your answer to one decimal place.
a.
years
b.
years
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