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Change Industries has 2,500 defective units of product that have already cost $14.50 each to produce. A slavage company will purchase the defective units as
Change Industries has 2,500 defective units of product that have already cost $14.50 each to produce. A slavage company will purchase the defective units as they are for $5.50 each. Chang's production manager reports that the defects can be corrected for $5.50 per unit, enabling them to be sold at their regular market price of $22.00. The incremental income or loss on reworking the units is: $27.500 loss. $27,500 income. $13,750 loss, $41, 250 income. A company is planning to purchase a machine that will cost $30,600, have a six - year life, and be depreciated over at three - year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly thoughout each year. A projected income statement for each year of the assets life appears below. What is the payback period for this machine 3.59 year. 3.67 year. 1.41 year. 6.00 year
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