Question: Empire Office needs a new machine for production of its new models. The financial Vice President has appointed you to do the capital budgeting analysis. You have identified a machine that is capable of performing the job. You have completed the cash flow analysis, and the expected net cash flows are as follows:
Year Est. Net Cash Flow
0 ($5,000)
1 2,085
2 2,085
3 2,085
4 2,085
What is the payback period?