What the cash payback period on the equipment is

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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.

Problem 1: The cash payback period on the equipment is

A. 24.0 years.

B. 8.0 years.

C. 6.0 years.

D. 3.0 years.

Reference no: EM132719332

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