Compute the payback period for each of these two separateinvestments:A new operating system for...Compute...

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Accounting

Compute the payback period for each of these two separateinvestments:
A new operating system for an existing machine is expected tocost $240,000 and have a useful life of six years. The systemyields an incremental after-tax income of $69,230 each year afterdeducting its straight-line depreciation. The predicted salvagevalue of the system is $9,000.
A machine costs $180,000, has a $13,000 salvage value, isexpected to last seven years, and will generate an after-tax incomeof $38,000 per year after straight-line depreciation.

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a given data machine cost 240000 estimated life 6 years salvage value 9000 after tax income 69230 calculation of annual cash flow after tax income 69230 annual See Answer

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In: AccountingCompute the payback period for each of these two separateinvestments:A new operating system for...Compute the payback period for each of these two separateinvestments:A new operating system for an existing machine is expected tocost $240,000 and have a useful life of six years. The systemyields an incremental after-tax income of $69,230 each year afterdeducting its straight-line depreciation. The predicted salvagevalue of the system is $9,000.A machine costs $180,000, has a $13,000 salvage value, isexpected to last seven years, and will generate an after-tax incomeof $38,000 per year after straight-line depreciation.