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Question
lawson co. is considering purchasing a new machine which will cost $350,000, but which will decrease costs each year by $100,000. the useful life of the machine is 10 years. the machine would be depreciated straight-line with no residual value over its useful life at the rate of $35,000/year. the cash payback period is
a.7.0 years
b.3.5 years
c.3.2 years
d.10.0 years
Answer
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