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Business, 19.09.2019 20:30 marlenemedina247

Major corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of five years and no salvage value. the machine will increase major's after-tax cash flow by $2,000 annually for five years. major uses the straight-line method of depreciation and has an incremental borrowing rate of 10%. the present value factors for 10% are as follows: ordinary annuity with five payments 3.79annuity due for five payments 4.17using the payback method, how many years will it take to pay back major's initial investment in the machine?

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