Question: Firm A borrows $20,000 at 5% and invests in machine with a useful life of 5 years. The Machine generates additional revenues of $10,000/year and

Firm A borrows $20,000 at 5% and invests in machine with a useful life of 5 years. The Machine generates additional revenues of $10,000/year and additional cost of $2,000/year. Firm As tax rate is 30%. The payback period is. a. 4.27 years b. 5 years c. 2.27 years d. 3.27 years

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