Considering the acquisition of new machinery

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Reference no: EM13787630

Porschia is considering the acquisition of new machinery that will produce uniform benefits over the next 9 years. The following information is available:

Annual savings in cash operating costs: $490,000

Annual depreciation expense: $390,000

If the company is subject to a 30% tax rate, what denominator should be used to compute the machinery's payback period?

$343,000.

$460,000.

$170,000.

$70,000.

None of these.

Reference no: EM13787630

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