Question: 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
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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