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Helicopter Gear is planning to expand its product line, which requires investment of $398,000 in special-purpose machinery. The machinery has a useful life of five years and no salvage value. The estimated annual results of offering t new products are as follows: Revenue Expenses (Ineluding straight-line depreciation) Increase in net income $530,000 (503,200) $ 26,800 and all expenses (except depreciation) will be received or paid in cash in the same All reve period as recognized for accounting purposes. nue from the new products ayback period for this proposed investment is: Multiple Choice 5.0 years 1.9 years.
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