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A company is considering a $280,000 investment in equipment. The equipment would be used to make a new product for the company to sell.
A company is considering a $280,000 investment in equipment. The equipment would be used to make a new product for the company to sell. The equipment has an estimated useful life of 7 years and a salvage value of $0. Additional information on this investment follows. Expected unit sales per year Selling price per unit Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses 10,000 units $ 90 per unit $ 564,800 $ 40,000 $ 249,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute the investment's payback period. Payback Period Numerator: 1 Denominator: I = II < Required A = II Payback period Required B >
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