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A company is considering the purchase of a new machine for $128,000. Management predicts that...

A company is considering the purchase of a new machine for $128,000. Management predicts that the machine can produce sales of $32,000 each year for the next 8 years.Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,500 per year plus depreciation of $10,800 per year. The company's taxrate is 38%. What is the payback period for the new machine?

-5.22 years.
-6.63 years.
-9.34 years.
-15.06 years.
-4.00 years.
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A company is considering the purchase of a new machine for $128,000. Management predicts that the machine can produce sales of $32,000 each year forthe next 8 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,500 per year plus depreciation of$10,800 per year. The company's tax rate is 38%. What is the payback period for the new machine?

-5.22 years.
-6.63 years.
-9.34 years.
-15.06 years.
-4.00 years.

answered by: yt
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