Question: Omaha Plating Corporation is considering purchasing a machine for $2,800,000. The machine is expected to generate a constant after-tax income of $90,000 per year for

Omaha Plating Corporation is considering purchasing a machine for $2,800,000. The machine is expected to generate a constant after-tax income of $90,000 per year for 10 years. The firm will use straight-line (SL) depreciation for the new machine over 6 years with no residual value.

What is the payback period for the new machine?

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