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Caruso Hardware is adding a new product line that will require an investment of $1,480,000. Managers estimate that this investment will have a 10-year life

Caruso Hardware is adding a new product line that will require an investment of $1,480,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $310,000 the first year, $300,000 the second year, and $245,000 each year thereafter for eight years. The investment has no residual value. Compute the payback period.

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