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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 $ Management predicts that the machine can produce sales of $ each year for the next years. Expenses are expected to include direct materials, direct labor, and factory overhead excluding depreciation totaling $ per year. The firm uses straightline depreciation with no residual value for all depreciable assets. Build's combined income tax rate is Management requires a minimum aftertax rate of return of on all investments. What is the payback period for the new machine rounded to nearest onetenth of a yearAssume that the cash inflows occur evenly throughout the year.
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