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Sinclair is considering the acquisition of new machinery that will produce uniform benefits over the next five years. The following information is available: Annual savings

Sinclair is considering the acquisition of new machinery that will produce uniform benefits over the next five years. The following information is available:

Annual savings in cash operating costs:$400,000Annual depreciation expense:$280,000

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

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