Question: Payback Period Ventura Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $3,000,000 and either has
(a) even cash flows of $750,000 per year or
(b) the following expected annual cash flows: $375,000, $375,000, $1,000,000, $1,000,000, and $250,000.
Required: Calculate the payback period for each case.