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3) Capital Budget Decision Problem Compute payback, NPV and IRR given this information: New packaging equipment cost: $220,000 Estimated useful life: 7 years Discount rate

3) Capital Budget Decision Problem

Compute payback, NPV and IRR given this information:

New packaging equipment cost: $220,000

Estimated useful life: 7 years

Discount rate (Required rate of return): 10%

Net annual cash inflow: $50,000

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