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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 $250,000
Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $250,000 and have a useful life of four years. The system yields an incremental after-tax income of S72,115 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000 b. A machine costs $170,000, has a $13,000 salvage value, is expected to last eight years, and will generate an after-tax income of $39,000 per year after straight-line depreciation. Payback Period 1 Choose Denominator: | = | Choose Numerator: Payback Period = | Payback period
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