Business, 21.12.2019 02:31, acrooks86

Abc steel co. is considering buying a new machine in order to increase its production capacity using new technology. details about the new equipment are below: purchase cost $300,000 savings offered by the new machine $62,500 per year life of the new machine 15 years the corporate policy of abc steel co. is to reject all proposal with a payback period of more than 7 years. therefore, would abc buy the new machine?

a. 7.2 years
b. 6.8 years
c. 4.8 years
d. 12.4 years

Answers: 1

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Abc steel co. is considering buying a new machine in order to increase its production capacity using...