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Clearwater Company is considering purchasing new equipment for $231,120. It is expected that the equipment will produce net annual cash flows of $42,800 over its

Clearwater Company is considering purchasing new equipment for $231,120. It is expected that the equipment will produce net annual cash flows of $42,800 over its 5-year useful life. Annual depreciation will be $46,224. Compute the cash payback period.

  • Round answer to 1 decimal place such as 1.2.
  • Cash Payback Period: years

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