Question: Doris Co. is considering purchasing a new machine which will cost $200,000, but which will decrease costs each year by $40,000. The useful life of

Doris Co. is considering purchasing a new machine which will cost $200,000, but which will decrease costs each year by $40,000. The useful life of the machine is 10 years. The machine would be depreciated straight-line with no residual value over its useful life at the rate of $20,000/year. The cash payback period is

4.0 years.

4.5 years.

5.0 years.

10.0 years.

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