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#2 Cowell Corporation is considering an investment in new equipment costing $160,000. The equipment will be depreciated on a straight-line basis over a five-year life
#2 Cowell Corporation is considering an investment in new equipment costing $160,000. The equipment will be depreciated on a straight-line basis over a five-year life and is expected to generate net cash inflows of $40,000 the first year, $35,000 the second year, and $82,000 every year thereafter until the fifth year. What is the payback period for this investment? The equipment has no residual value. O A. 2.51 years O B. 3.25 years OC. 3.04 years O D. 4.04 years wd
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