Porschia is considering the acquisition of new machinery that will produce uniform benefits over the next 9 years. The following information is available:
Annual savings in cash operating costs: $490,000
Annual depreciation expense: $390,000
If the company is subject to a 30% tax rate, what denominator should be used to compute the machinery's payback period?
$343,000.
$460,000.
$170,000.
$70,000.
None of these.