SkiTime Photos plans to spend $74,400 for a new machine, which is expected to generate cash inflows of $18,600 per year over its useful life of 10 years. The new machine will be depreciated on a straight-line basis over 10 years with no salvage value. What is the payback period?
A) 4 years
B) 5 years
C) 8 years
D) 10 years
Correct Answer:
Verified
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