A company is considering the purchase of a new machine for $68,000. Management predicts that the machine can produce sales of $19,000 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,000 per year including depreciation of $6,000 per year. The company's tax rate is 40%. What is the payback period for the new machine?

A company is considering the purchase of a new machine for $68,000. Management predicts that the machine can produce sales of $19,000 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,000 per year including depreciation of $6,000 per year. The company's tax rate is 40%. What is the payback period for the new machine? O 3.58 years. O 50 years O 5.15 years. O 11.33 years. O 67 years