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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Jackson Inc. disposes of other companies’ toxic waste. Currently, Jackson loads the waste by hand
into a truck, which requires labor of $20 per load. Jackson is considering a machine that would
reduce the amount of time needed to load the waste. The machine would cost $200,000 but would
reduce labor cost to $5 per load. Assume that Jackson averages 10,000 loads per year. How many
years (rounded to 2 decimal places) would it take for Jackson to recover the cost of the new machine?
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