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What the cash payback period on the machine

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Question - A company is considering purchasing a machine that costs $500000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $200000, and the annual operating expenses exclusive of depreciation expense are expected to be $36000. The straight-line method of depreciation would be used. What the cash payback period on the machine?

Reference no: EM132950813

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