Food Harvesting Corporation is considering purchasing a machine for $1,718,750. The machine is expected to generate a constant after-tax income of $103,125 per year for 15 years. The firm will use straight-line(SL) depreciation for the new machine over 10 years with no residual value. What is the payback period for the new machine? (Round your answer to two decimal places.)

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Chapter11: Capital Budgeting Decisions
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Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...
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Food Harvesting Corporation is considering purchasing a machine for $1,718,750. The machine is expected to generate a constant after-tax income of $103,125 per year for 15 years. The firm will use straight-line(SL) depreciation for the new machine over 10 years with no residual value. What is the payback period for the new machine? (Round your answer to two decimal places.)
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