A machine costs $5420 and generates an annual end of year benefit of $1000 for 8 years. If a nominal interest rate of 9.532% with continuous compounding is assumed. Calculate (a) the pay back period (b)the break even point in years at which the purchase price equal the present value of the benefit received.
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A machine costs $5420 and generates an annual end of year benefit of $1000 for 8 years. If a nominal interest rate of 9.532% with continuous…
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