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A department proposes to purchase a machine at the cost of $153,000. The machine will save the company $60,000 per year after tax, for years

A department proposes to purchase a machine at the cost of $153,000. The machine will save the company $60,000 per year after tax, for years 1 and 2. Annual savings will drop to $45,000 for years 3 and 4. The machine will have no salvage value after 4 years. The companys cost of capital is 9.0%. What is the discounted payback period for the proposal?

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