A manufacturer of diaphragm seals has identified the cash flows shown for manufacturing and sales functions. Determine the no-return payback period.

First cost of equipment $ ?130,000
Annual expenses, $ per year ?45,000
Annual revenue, $ per year 75,000


Let np = number of years until payback

0 = -130,000 + (75,000 - 45,000)np
30,000np = 130,000
np = 4.3 years

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