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Chee Corporation has gathered the following data on a proposed investment project: Investment required in equipment $240,000 Annual cash inflows $50,000 Salvage value $0 Life
Chee Corporation has gathered the following data on a proposed investment project: Investment required in equipment $240,000 Annual cash inflows $50,000 Salvage value $0 Life of the investment 8 years Required rate of return 10% The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment is closest to:
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