Question: The company paid $50,000 cash for a capital investment. The company expects the investment? The company paid $50,000 cash for a capital investment. The company expects the investment\nto generate net cash inflows of $8,400 per year. What is the payback period of this investment?

Answer: If the cash inflow is only $8,400 a year, they may never pay back the investment. If on the other hand you mean net increase in profit AFTER taxes, about 6 years, still not a good roi.
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