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A company is considering the purchase of a new machine for $75 , 660 . Management predicts that the machine can produce sales of $20
A company is considering the purchase of a new machine for $75 , 660 . Management predicts that the machine can produce sales of $20 , 000 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $16 , 800 per year, including depreciation of $4 , 600 per year. What is the payback period for the new machine? 20.80 years. 8.30 years. 12.80 years. 9.70 years. 6.80 years
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