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What is the payback period for warren corp

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Reference no: EM132758043

Warren 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 $24,800. The equipment will have an initial cost of $199,700 and have a 10-year life and no salvage value of the equipment.

Problem 1: What is the payback period?

Reference no: EM132758043

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