Payback: Regent Corp. management is evaluating three competing types of equipment. Costs and cash flow projections for

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Payback: Regent Corp. management is evaluating three competing types of equipment. Costs and cash flow projections for all three are given in the following table. Which would be the best choice based on payback period? image text in transcribed

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Fundamentals Of Corporate Finance

ISBN: 9781119795438

5th Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Sep 14, 2024 04:22 AM

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Payback: Regent Corp. management is evaluating three competing types of equipment. Costs and cash flow projections for

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Year Type 1 Type 2 0 -$1,311,450 -$1,415,888 Type 2 -$1,612,856 1 212,566 586,212 786,212 2 269,825 413,277 175,000 3 455,112 331,199 175,000 4 285,552 141,442 175,000 5 121,396 175,000 6 175,000

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Fundamentals Of Corporate Finance

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