Compute the payback period for the machine

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Reference no: EM13826984

(Ignore income taxes in this problem.) Vander Company is considering purchasing a machine that would cost $454,140 and have a useful life of 8 years. The machine would reduce cash operating costs by $84,100 per year. The machine would have a salvage value of $107,130 at the end of the project.

Required:

a. Compute the payback period for the machine.

Reference no: EM13826984

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