Multiple Choice
A machine that costs $180,000 is expected to generate $40,000 in cost savings annually for five years.The terminal value at the end of five years is $10,000.Assume straight-line depreciation is used.Ignore income taxes.What is the payback period?
A) 3.00 years
B) 4.00 years
C) 4.20 years
D) 4.50 years
Correct Answer:
Verified
Correct Answer:
Verified
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