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Brady Corp. is considering the purchase of a piece of equipment that costs $20,000. Projected net annual cash flows over the projects life are: Year

Brady Corp. is considering the purchase of a piece of equipment that costs $20,000. Projected net annual cash flows over the projects life are:

Year Net Annual Cash Flow

1 $ 3,000

2 8,000

3 15,000

4 9,000

The cash payback period is

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2.60 years

2.29 years.

2.40 years.

2.31 years

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