What the new equipments has a pay-back period of


The Higston Company has just purchased a piece of equipment at a cost of $500,000. This equipment will reduce operating costs by $100,000 each year for the next eight years. This equipment replaces old equipment that was sold for $10,000 cash. Ignoring income taxes, what the new equipments has a pay-back period of:

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Accounting Basics: What the new equipments has a pay-back period of
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