In evaluating equipment acquisitions decisions, Martha Co. uses a goal of a 3-year payback period....
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In evaluating equipment acquisitions decisions, Martha Co. uses a goal of a 3-year payback period. A new equipment is being evaluated that costs $450,000 and has a 5-year life. Straight-line depreciation will be used; no salvage is anticipated. Martha Co. is subject to a 40% income tax rate. To meet the company's payback goals, the new equipment must increase the annual before-tax operating cash flow by at least
Group of answer choices 150,000 60,000 $190,000 100,000
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