Warburg company is planning to purchase a new machine for


Warburg Company is planning to purchase a new machine for $91,435 with no salvage. The new machine is expected to produce cash inflows from operations before income taxes of $25,397 a year in each of the next 14 years. Depreciation will be charged to income for each of the next 14 years. Assume the income tax rate is 21%. The payback period would be approximately

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