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The machine has a ten year life and no salvage value and

Question - Pete and Fred want to buy a $600,000 machine that will improve the efficiency and effectiveness of their operations. The machine has a ten year life and no salvage value and the after tax cash flow of the project is expected to be $130,000 per year. The payback on the project is approximately:

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Accounting Basics: The machine has a ten year life and no salvage value and

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