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Assume that a company buys a new machine for $ 2 2 0 , 0 0 0 that has a useful life of five years
Assume that a company buys a new machine for $ that has a useful life of five years and a $ salvage value. The new machine will replace an old machine that can be sold for a salvage value of $ The machine will generate incremental contribution margin of $ per year. The only fixed expense associated with the new machine is its annual depreciation of $ per year. What is the payback period for this investment?
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