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ABC Inc. is considering a $500,000 investment to automate the production process. The new equipment will result in labor savings for the next five years

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ABC Inc. is considering a $500,000 investment to automate the production process. The new equipment will result in labor savings for the next five years as follows: Year 1: $200,000; Year 2: $125,000; Year 3: $75,000; Year 4: $60,000; and Year 5: $50,000. The payback period is exactly 4.50 years. True False

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