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Beyer Company is considering the purchase of an asset for $350,000. It is expected to produce the following net cash flows. The cash flows occur

Beyer Company is considering the purchase of an asset for $350,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year.

Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $ 82,000 $ 45,000 $ 70,000 $ 180,000 $ 14,000 $ 391,000

Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.)

Year Cash inflow (Outflow) Cumulative Net Cash Inflow (Outflow)
0 $(350,000)
1 82,000
2 45,000
3 70,000
4 180,000
5 14,000
Payback period =

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