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A company is planning to purchase a machine that will cost $59,400 with a six-year life and no salvage value. The company expects to sell

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A company is planning to purchase a machine that will cost $59,400 with a six-year life and no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (30) Net income 141,000 $69,000 9,900 49,000(127,900) $ 13,100 (3,930) 9,170

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