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A company is considering the purchase of a new machine for $128,700. Management predicts that the machine can produce sales of $26,500 each year for
A company is considering the purchase of a new machine for $128,700. Management predicts that the machine can produce sales of $26,500 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $22,000 per year, including depreciation of $7,200 per year. What is the payback period for the new machine?
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14.10 years.
8.10 years.
9.60 years.
22.10 years.
11.00 years.
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