Porschia is considering the acquisition of new machinery that will produce uniform benefits over the next eight years. The following information is available:
Annual savings in cash operating costs: $350,000
Annual depreciation expense: $250,000
If the company is subject to a 30% tax rate, what denominator should be used to compute the machinery's payback period?

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The Answer of Porschia is considering the acquisition of new machinery that will produce uniform benefits over the next eight years. The following information is available:
Annual savings in cash operating costs: $350,000
Annual depreciation expense: $250,000
If the company is subject to a 30% tax rate, what denominator should be used to compute the machinery's payback period?

Porschia Is Considering the Acquisition of New Machinery That Will