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A company is considering purchasing a machine for $31,000. The machine will generate an after-tax net income of $4,000 per year. Annual depreciation expense would
A company is considering purchasing a machine for $31,000. The machine will generate an after-tax net income of $4,000 per year. Annual depreciation expense would be $3,500. What is the payback period for the new machine? |
a. | 4.13 years. |
b. | 8.86 years. |
c. | 7.75 years. |
d. | 7.71 years. |
e. | 7.71 years. |
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