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Assume the following Information for a capital budgeting proposal with a five-year time horizon: Initial investment: Cost of equipment (zero salvage value) $ 540,500 Annual
Assume the following Information for a capital budgeting proposal with a five-year time horizon: Initial investment: Cost of equipment (zero salvage value) $ 540,500 Annual revenues and costs: Sales revenues $ 300,000 Variable expenses $ 130,060 Depreciation expense $ 50,500 Fixed out-of-pocket costs $ 40,900 The payback period for this Investment is closest to: Multiple Choice O 6.75 years. O 3.18 years. O 4.15 years. O 1.82 years
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