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The Higgins Company has just purchased a piece of equipment at a cost of $100,000. This equipment will reduce operating costs by $60,000 each year

The Higgins Company has just purchased a piece of equipment at a cost of $100,000. This equipment will reduce operating costs by $60,000 each year for the next six years. This equipment replaces old equipment which was sold for $10,000 cash. The new equipment has a payback period of: (Ignore income taxes.)

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