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Compute the payback period for each of these two separate investments: 8. A new operating system for an existing machine is expected to cost $300,000
Compute the payback period for each of these two separate investments: 8. 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 $190.000, has a 516,000 salvage value, is expected to last eight years, and will generate an after-tax income of $47.000 per year after straight line depreciation Payback Period Choose Numerator: I Choose Denominator: - Payback Period Payback period
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