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A company is considering the purchase of a new machine for $87,000. Management predicts that the machine can produce sales of $23,200 each year for the next eight years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $4,350 per year plus depreciation of $10,800 per year. The company's tax rate is 40%. What is the payback period for the new machine?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9958988

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