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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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