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Julius Company Is Considering the Purchase of a New Machine

Question 2

Multiple Choice

Julius Company is considering the purchase of a new machine for $100,000.The machine generates annual revenues of $62,500 and annual expenses of $37,500, which includes $7,500 of depreciation.What is the payback period in years on the machine approximated to one decimal point?


A) 1.6
B) 3.1
C) 4.0
D) 1.7

Correct Answer:

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