The ABC company is planning to purchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 with zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X? O A) 3,5 OB) 4,5 Oc) 3,0 OD) 4,0 OE) 2,5 17

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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3. The ABC company is planning to putchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 years
with zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X?
O A) 3,5
OB) 4,5
OC) 3,0
17160508
OD) 4,0
OE) 2,5
1180
1786058
1800
Transcribed Image Text:3. The ABC company is planning to putchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 years with zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X? O A) 3,5 OB) 4,5 OC) 3,0 17160508 OD) 4,0 OE) 2,5 1180 1786058 1800
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