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A company is considering purchasing a machine for $22,400. The machine will generate an after-tax net income of $4,100 per year. Annual depreciation expense would
A company is considering purchasing a machine for $22,400. The machine will generate an after-tax net income of $4,100 per year. Annual depreciation expense would be $3,600. What is the payback period for the new machine?
1.5 years.
2.9 years.
5.5 years.
6.2 years.
44.8 years.
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