A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000

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A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and is expected to reduce operating costs by $20,000 each year. The payback period for this machine in years is closest to:

A. 0.27 years

B. 10.7 years

C. 3.75 years

D. 40 years

Related Book For answer-question

Cornerstones of Financial and Managerial Accounting

ISBN: 978-1111879044

2nd edition

Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

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Posted Date: Jun 25, 2022 09:47 PM

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A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000

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Cornerstones of Financial and Managerial Accounting

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