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A company is considering purchasing a machine for $22,600. The machine will generate an after-tax net income of $4,400 per year. Annual depreciation expense would
A company is considering purchasing a machine for $22,600. The machine will generate an after-tax net income of $4,400 per year. Annual depreciation expense would be $3,900. What is the payback period for the new machine?
Multiple Choice 5.1 years.
1.4 years.
2.7 years.
5.8 years.
45.2 years.
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