Operating assets is considering the purchase

Reference no: EM13135163

A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year. The payback period for this machine in years is closest to:

A. 0.27 years

B. 10.7 years

C. 3.75 years

D. 40 years

Reference no: EM13135163

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