ABC Steel Co. is considering buying a new machine in order to increase its production capacity using new technology. Details about the new equipment are below: Purchase Cost $300,000 Savings offered by the new machine $62, 500 per year Life of the new machine 15 years Calculate the payback period for the new machine. 7.2 years 6.8 years 4.8 years 12.4 years The corporate policy of ABC Steel Co. is to reject all proposal with a payback period of more than 7 years. Therefore, would ABC buy the new machine? yes no cannot be determined none of above