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A company is considering purchasing factory equipment that costs $576000 and is estimated to have no salvage value at the end of its 8-year useful
A company is considering purchasing factory equipment that costs $576000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased annual revenues are expected to be $132000 and annual operating expenses exclusive of depreciation expense are expected to be $36000. The straight-line method of depreciation would be used The cash payback period on the equipment is O 8.0 years. O 24.0 years O 3.0 years. 6.0 years
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