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Sinclair is considering the acquisition of new machinery that will produce uniform benefits over the next 5 years. The following information is available: annual savings
Sinclair is considering the acquisition of new machinery that will produce uniform benefits over the next 5 years. The following information is available: annual savings in cash operating costs: 460,000 annual depreciation expense: 360,000 If the company is subject to a 20% tax rate, what denominator should be used to compute the machinery's payback period? A 80,000 B 440,000 C 368,000 D 180,000 E none of the answers is correct
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