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Question(s) / Instruction(s):

A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the payback period for the new machine? 


A. 4 years.


B. 6 years.


C. 10.5 years.


D. 14 years.


E. 42 years.

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