Porschia is considering the acquisition of new machinery that will produce uniform benefits over the next eight years. The following information is available: Annual savings in cash operating costs: $350,000 Annual depreciation expense: $250,000 *Correction* Assume that salvage value is $0, giving you the acquisition cost of the asset of $2,000,000

A. If the company is subject to a 30% tax rate, what denominator should be used to compute the machinery's payback period?

B. The company's after-tax accounting rate of return is: