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Payback period (answer expressed in years, months and days).

Hi, can you help to

Calculate the following from the information given below:

Payback period (answer expressed in years, months and days).

Accounting Rate of Return on average investment (answer expressed to 2 decimal places).

Internal Rate of Return (answer expressed to 2 decimal places) if the net cash inflow per year is R200 000 for 5 years. Use interpolation to arrive at your answer.

INFORMATION

Fego Limited is considering the purchase of Machine X, details of which are provided below:



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The cost of capital is 12%. Depreciation is calculated using the straight-line method. No scrap value is expected for the machine.

thanks

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Top Answer

Payback period is 3 years 1 month 23 days... View the full answer

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