A company is considering the purchase of a new machine for $63,000. Management predicts that the machine can produce sol

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A Company Is Considering The Purchase Of A New Machine For 63 000 Management Predicts That The Machine Can Produce Sol 1 (17.11 KiB) Viewed 10 times

A company is considering the purchase of a new machine for $63,000. Management predicts that the machine can produce soles of $17.500 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $6,500 per year including depreciation of $5.500 per year. Income tax expense is $4,400 per year based on a tax rate of 40%. What is the payback period for the new machine? Multiple Choice 3.60 years 6.63 years 5.21 years 11.45 years 42.00 years