Question: Omaha Plating Corporation is considering purchasing a machine for $1,400,000. The machine is expected to generate a constant after-tax income of $100,000 per year for

Omaha Plating Corporation is considering purchasing a machine for $1,400,000. The machine is expected to generate a constant after-tax income of $100,000 per year for 13 years. The firm will use straight-line (SL) depreciation for the new machine over 12 years with no residual value.

What is the payback period for the new machine?

Multiple Choice

4 years.
5 years.
6 years.
10 years.
15 years.

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