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(4) Sky High Company is considering the purchase of an investment of $250,000. Data related to the investment are as follows: $7,000 Cash flows
(4) Sky High Company is considering the purchase of an investment of $250,000. Data related to the investment are as follows: $7,000 Cash flows (at the end of the next 4 years) $125,000 Salvage value of new investment $25,000 Proceeds from disposal of old investment $22,000 Investment in working capital $14,000 Tax Rate 21% With a discount rate of 9%, what is the simple payback period of the investment?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
