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4 ABC Company purchased equipment having a cost of $150,000. It is expected that the equipment will generate annual net cash inflows of $40,000 per

4 ABC Company purchased equipment having a cost of $150,000. It is expected that the equipment will generate annual net cash inflows of $40,000 per year and the equipment has an expected life of six years. ABC Company employs a cost of capital of 14% on all capital projects. The payback period on the machine is closest to: 8 years O 2.17 years 3.75 years 1.24 years 1.32 years

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