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A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $16,000 each year for

A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $16,000 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $12,000 per year including depreciation of $3,000 per year. The company's tax rate is 40%. What is the payback period for the new machine?

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