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Business, 03.12.2019 01:31 thelonewolf5020

Acompany is considering the purchase of a new machine for $53,000. management predicts that the machine can produce sales of $16,500 each year for the next 10 years. expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,500 per year including depreciation of $4,500 per year. income tax expense is $3,600 per year based on a tax rate of 40%. what is the payback period for the new machine?
a. 3.21 years.
b. 6.24 years.
c. 5.35 years.
d. 11.78 years.
e.25.24 years.

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