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Belmont corp is considering the purchase of a new piece of

Question - Belmont Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $200,000. The equipment will have an initial cost of $1,000,000 and have an 8 year life. If there is no salvage value of the equipment, what is the payback period?

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Accounting Basics: Belmont corp is considering the purchase of a new piece of

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