Question: A new manufacturing machine is expected to cost $286,000, have an eight-year life, and a $30,000 salvage value . The machine will yield an annual

A new manufacturing machine is expected to cost $286,000, have an eight-year life, and a $30,000 salvage value. The machine will yield an annual incremental after-tax income of $35,000 after deducting the straight-line depreciation. Compute the payback period for the purchase.
a. 8.7 years.
b. 3.8 years.
c. 4.3 years.
d. 7.3 years.
e. 5.4 years

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