1) Compute the average annual cash inflows. 2) Compute the payback period using the accumulation method. Year 2013 2014 2015 2016 2017 Incremental revenue

1) Compute the average annual cash inflows.

2) Compute the payback period using the accumulation method.

Year 2013 2014 2015 2016 2017

Incremental revenue 6,000 2,000 4,000 2,000 1,000

Cost of new machine 12,000

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