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PLEASE HELPPP 26 A company is considering the purchase of a new machine for $51,000. Management predicts that the machine can produce sales of $16,300
PLEASE HELPPP
26 A company is considering the purchase of a new machine for $51,000. Management predicts that the machine can produce sales of $16,300 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,700 per year including 8 0052.58depreciation of $4,300 per year. Income tax expense is $3,440 per year based on a tax rate of 40%, what is the payback period for the new machine? eBook Multiple Choice 313 years. 6.14 years. 5.39 years. 11.86 years. 22.97 yearsStep by Step Solution
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