samiiegarciia
samiiegarciia
06.08.2021 • 
Business

A company is considering the purchase of a new machine for $58,000. Management predicts that the machine can produce sales of $17,000 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,000 per year including depreciation of $5,000 per year. Income tax expense is $4,000 per year based on a tax rate of 40%. What is the payback period for the new machine

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