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A large restaurant chain is considering purchasing a new wharehouse for $700,000. They believe that the wharehouse will generate net cash inflows of $175,000 annually,

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A large restaurant chain is considering purchasing a new wharehouse for $700,000. They believe that the wharehouse will generate net cash inflows of $175,000 annually, but it will only give them 5 years of useful life. Using the payback model, should they purchase this wharehouse? A Yes because they will recover the cost of their investment before 5 years. B Yes because they will not recover the cost of their investment before 5 years. No because they will not recover the cost of their investment before 5 years. D No because they will recover the cost of their investment before 5 years. w Questions Filter (13)

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