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mpany with $720,000 in operating assets is considering the purchase of a machine that costs $80,000 and which is expected to reduce operating costs by $26,000 each year. These reductions in cost occur evenly throughout the year. Th payback period for this machine in years is closest to (Ignore income taxes.): (Rour your answer to 1 decimal place.) 9 years 0.33 years 3.1 years 27.7 years

mpany with $720,000 in operating assets is considering the purchase of a machine that costs $80,000 and which is expected to reduce operating costs by $26,000 each year. These reductions in cost occur evenly throughout the year. Th payback period for this machine in years is closest to (Ignore income taxes.): (Rour your answer to 1 decimal place.) 9 years 0.33 years 3.1 years 27.7 years

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A company with $720,000 in operating assets is considering the purchase of a machine that costs $80,000 and which is expected to reduce operating costs by $26,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.) 9 years 0.33 years 3.1 years 27.7 years
Transcribed Image Text:A company with $720,000 in operating assets is considering the purchase of a machine that costs $80,000 and which is expected to reduce operating costs by $26,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.) 9 years 0.33 years 3.1 years 27.7 years
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