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Compute the cash payback period on the machine

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Question - A company is considering purchasing a machine that costs $480000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $190000 and annual operating expenses exclusive of depreciation expense are expected to be $34000. The straight-line method of depreciation would be used. Compute the cash payback period on the machine?

Reference no: EM132732119

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