A company is considering purchasing equipment costing $75,000. Future annual net cash flows from this equipment are

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A company is considering purchasing equipment costing $75,000. Future annual net cash flows from this equipment are $30,000, $25,000, $15,000, $10,000, and $5,000. The payback period is

(a) 4 years,

(b) 3.5 years, or

(c) 3 years.

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Fundamental Accounting Principles Volume 2

ISBN: 9780077716660

21st Edition

Authors: John Wild, Ken Shaw, Barbara Chiappetta

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