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Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine will generate
Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine will generate after-tax savings of $250,000 per year over the next four years. Refer to Gamma Electronics. If the firm has a 15% cost of capital, whats the discount payback period of the investment? Group of answer choices 2.0 years 2.4 years 2.6 years 1.5 years
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