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Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments 2. A new operating

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Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments 2. A new operating system for an existing machine is expected to cost $240,000 and have a useful ife of four years. The system Vields an incremental after tax income of $69.230 each year after deducting its straight line depreciation. The predicted salvage b. A machine costs $200,000, has a $13.000 salvage value, is expected to tast ten years, and will generate an after tax income of $38,000 per year after straight-line depreciation Payback Period Choose Denominator Choose Numarator Paybach Period Payback period a. 3) > "3,4" ) N. $ 4 % 5

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