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Content AreaThe management of Royal Inc. is considering the purchase of a new machine costing $500,000. In addition to this information, use the following data
Content AreaThe management of Royal Inc. is considering the purchase of a new machine costing $500,000. In addition to this information, use the following data in determining the acceptability in this situation: Year Income from Operations Net Cash Flow 1 $100,000 $200,000 2 80,000 170,000 3 50,000 130,000 4 10,000 80,000 5 10,000 80,000 The cash payback period for this investment is _____. a. 4 years b. 2 years c. 5 years d. 3 years
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