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A company with $900,000 in operating assets is considering the purchase of a machine that costs $92,000 and which is expected to reduce operating costs

A company with $900,000 in operating assets is considering the purchase of a machine that costs $92,000 and which is expected to reduce operating costs by $24,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.):

3.8 years

9.8 years

0.26 years

37.5 years

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