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Firm A borrows $20,000 at 5% and invests in machine with a useful life of 5 years. The Machine generates additional revenues of $10,000/year and

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Firm A borrows $20,000 at 5% and invests in machine with a useful life of 5 years. The Machine generates additional revenues of $10,000/year and 3 .additional cost of $2,000/year. Firm A's tax rate is 30%. The payback period is years 4.27 years 2.27 bO years 5 years 3.27 .do

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