A company is considering the purchase of a new machine for $102,960. Management predicts that the machine can produce sales of $23,500 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $19,600 per year, including depreciation of $6,000 per year. What is the payback period for the new machine? Multiple Choice. a.10.40 years. b. 21.50 years. c. 13.50 years. d. 9.00 years. e. 7.50 years.
