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What the cash payback period on the equipment

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Reference no: EM133025852

Question - A company is considering purchasing factory equipment that costs $576000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $135000 and annual operating expenses exclusive of depreciation expense are expected to be $39000. The straight-line method of depreciation would be used. What the cash payback period on the equipment?

Reference no: EM133025852

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