What is the payback period

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Problem - Belmont Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $234,000. The equipment will have an initial cost of $1,048,000 and have an 8-year life. If there is no salvage value of the equipment, what is the payback period?

Reference no: EM132953032

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