Question $19$

$3pts$

Copr. Goedl Align, Inc. is considering a new piece of equipment that costs $$120,000.$ The company can get $$11,000$ for trading in their old machine. Follow is financial data relevant to the new machine: $$42,000$ revenue; $$24,000$ cash expenses; useful life $10$ years; depreciation expense $$9,000$ per year.

The payback period is:

$6\mathrm{.}056$ years

$6\mathrm{.}667$ years

$13\mathrm{.}333$ years

$12\mathrm{.}111$ years