Multiple Choice
A company with $500,000 in operating assets is considering the purchase of a machine that costs $60,000 and which is expected to reduce operating costs by $15,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.) :
A) 0.25 years
B) 8.3 years
C) 4 years
D) 33.3 years
Correct Answer:
Verified
Correct Answer:
Verified
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