Question: A company with $800,000 in operating assets is considering purchasing a machine that costs $300,000 with an estimated salvage value of $40,000. The acquisition is

A company with $800,000 in operating assets is considering purchasing a machine that costs $300,000 with an estimated salvage value of $40,000. The acquisition is expected to reduce operating costs by $55,000 in year 1 $60,000 in year 2 $65,000 in year 3 $70,000 in year 4 $75,000 in year 5 $80,000 in year 6

How long is the payback period?

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