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Mars Company purchased a machine for $240,000. The machine has expected five-year life and a salvage value at the end of the five years equal
Mars Company purchased a machine for $240,000. The machine has expected five-year life and a salvage value at the end of the five years equal to $25,000. The machine is expected to generate net cash inflows each year as follows:
Year 1-84,000
Year 2-102,000
Year 3-108,000
Year 4-72,000
Year 5-54,000
The payback period on this machine would be closest to:
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Audit Risk Alert Employee Benefit Plans Industry Developments 2017
Authors: AICPA
1st Edition
1945498722, 978-1945498725
