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Lorman Manufacturing purchases equipment with an expected life of 10 years for $50,000. The equipment...

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Accounting

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 cost savings of $8,000. What is the payback period for the equipment? 6.50 years 6.25 years 10 years 6 years

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