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A new operating system for an existing machine is expected to cost $270,000 and have a useful life of five years. The system yields an incremental after-tax income of $77,884 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000

Pay back period?

A machine costs $200,000, has a $14,000 salvage value, is expected to last eight years, and will generate an after-tax income of $43,000 per year after straight-line depreciation

payback priud?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9946568

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