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1 . SNU Manufacturing Inc. is considering the purchase of a piece of equipment with an initial investment cost of $ 1 5 0 ,
SNU Manufacturing Inc. is considering the purchase of a piece of equipment with an initial investment cost of $ and SNU expects a return of $ in year one, $ in years two and three, $ in years four and five, and $ in year six and beyond, what is the payback period? To the closest year, how long will it take any investment to double if it earns percent interest? How long will it take it the investment earns percent? Assume a company is going to make an investment of $ in a machine and the following are the cash flows that two different products would bring in years one through four. Which of the two options would you choose based on the payback method?
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