#2 Check my work Exercise 11-5 Payback period computation; even cash flows LO...
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Check my work Exercise 11-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: 0.85 points eBook a. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after- tax income of $60,000 per year after straight-line depreciation. Hint Print References Payback Period Choose Numerator: 7 Choose Denominator: = Payback Period Payback period
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