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Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment.

17. Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine will generate after-tax savings of $250,000 per year over the next four years. What's the payback period for the investment?

a. 1.8 years
b. 2.0 years
c. 2.5 years
d. 2.8 years
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Finance- 8206394.xls

Ques: 17. Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine
will generate after-tax savings of $250,000 per...

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