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Build Corporation wants to purchase a new machine for $ 3 0 3 , 0 0 0 . Management predicts that the machine can produce

Build Corporation wants to purchase a new machine for $303,000. Management predicts that the machine can produce sales of $216,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $80,000 per year. The firm uses straight-line depreciation with no residual value for all depreciable assets. Build's combined income tax rate is 50%. Management requires a minimum after-tax rate of return of 14% on all investments. What is the payback period for the new machine (rounded to nearest one-tenth of a year)?(Assume that the cash inflows occur evenly throughout the year.)

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