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Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $300,000

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Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $300,000 and have a useful life of five years. The system yields an incremental after-tax income of $86,538 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $12,000 b. A machine costs $210,000, has a $16,000 salvage value, is expected to last eleven years, and will generate an after-tax income of $47,000 per year after straight-line depreciation. Choose Numerator: I Choose Denominator:Payback period Payback period id D

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