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Quip Corporation wants to purchase a new machine for $330,000. Management predicts that the machine...

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Quip Corporation wants to purchase a new machine for $330,000. Management predicts that the machine will produce sales of $210,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $87,000 per year. The firm uses the straight-ine depreciation and expects the machine to have a residual value of $56,000. Quip's combined income tax rate, t, is 40.00%. The required rate of return is 10.00% What is the present value payback in years? 4.28 3.45 3.65 4.68 4.48

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