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Business, 18.06.2020 01:57 MissSusan2253

Compute the payback period for each of these two separate investments: A. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000.
B. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation.
Payback Period
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Numerator Denominator = Period
Payback period
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Compute the payback period for each of these two separate investments: A. A new operating system fo...
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