Amanda’s Candles is considering investing in a new candle shaping machine costing $120,000. Expected cash savings for the next five years is as follows: Year 1 - $40,000; Year 2 - $20,000; Year 3 - $30,000; Year 4 - $30,000; Year 5 - $30,000. The machine will require a major overhaul in year three that is estimated to cost $20,000. When will the company have payback for the new shaping machine?
No comments:
Post a Comment