Newco has a 3 year pay-back rule for investments up to, Ask an Expert

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NewCo has a 3 year pay-back rule for investments up to $40,000. Compute the pay-back period in years for the following and indicate whether the investment should be done:

Investment Cost Annual Incr. PAT Pay-back in Years? Decision?

Copier $5,000 $1,800

Delivery Car $26,000 $8,900

Machine to reduce Labor $32,000 $9,500

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92317981

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