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8 00 0112:56 Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is

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8 00 0112:56 Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $270,000 and have a useful life of six years. The system yields an incremental after-tax income of $77,884 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000 b. A machine costs $180,000, has a $14,000 salvage value, is expected to last seven years, and will generate an after-tax income of $43,000 per year after straight-line depreciation a b Payback Period Choose Numerator: Choose Denominator Payback Period Payback period

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