Multiple Choice
Lorman Manufacturing purchases equipment with an expected life of 10 years for $50,000.The equipment has an estimated salvage value of $2,000.Lorman expects the new equipment to generate annual cost savings of $8,000.What is the payback period of the equipment?
A) 6 years
B) 6.25 years
C) 6.50 years
D) 10 years
Correct Answer:
Verified
Correct Answer:
Verified
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