Sinclair 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:	$	520,000
Annual depreciation expense:	$	400,000

If the company is subject to a 40% tax rate, what denominator should be used to compute the machinery's payback period?

Multiple Choice

• $72,000.

• $192,000.

• $312,000.

• $472,000.

• None of the answers is correct.