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A piece of equipment costs $33,000, and is expected to generate $8,900 of annual cash revenues and $1,600 of annual cash expenses. The disposal value

A piece of equipment costs $33,000, and is expected to generate $8,900 of annual cash revenues and $1,600 of annual cash expenses. The disposal value at the end of the estimated 10-year life is $3,000. Ignoring income taxes, the payback period is:

3.71 years.

4.11 years.

4.52 years.

7.17 years.

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