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ABC Company is evaluating whether to invest in a project. The project is a $250,000 investment in pollution abatement equipment. The cash savings from implementing
ABC Company is evaluating whether to invest in a project. The project is a $250,000 investment in pollution abatement equipment. The cash savings from implementing this equipment will be $24,000 per year for 25 years. The cost of capital for ABC Co. is 8%. Evaluate the investment using the capital budgeting method "Payback Period" and discuss your findings and recommendations.
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