The equipment will have an initial cost of 900000 and have


Question - Newport Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $200,000. The equipment will have an initial cost of $900,000 and have a 6 year life. There is no salvage value for the equipment. What is the payback period?

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Accounting Basics: The equipment will have an initial cost of 900000 and have
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