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PLEASE HELP - IN A TIME CRUNCH 15 MIN LEFT! THANK YOU IN ADVANCE Kaleb Corp. is planning to purchase a machine that will cost
PLEASE HELP - IN A TIME CRUNCH 15 MIN LEFT! THANK YOU IN ADVANCE
Kaleb Corp. is planning to purchase a machine that will cost $120,000, has a ten-year life and no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? $96,000 Sales Costs: Manufacturing Depreciation on machine Selling and Administrative expenses Income before taxes Income tax (50%) Net Income $44,000 12,000 24,000 (80,000) $16,000 (8,000) $8,000 O 6 years. O 7 years. O 15 years. D 10 years
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