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Continuing from our previous analysis, Dr. Smith and Dr. Brown's physician practice is considering two investments: $70,000 in a laboratory and $125,000 in electronic health
Continuing from our previous analysis, Dr. Smith and Dr. Brown's physician practice is considering two investments: $70,000 in a laboratory and $125,000 in electronic health record (EHR) software. Calculating the payback period will provide a clear estimate of the time required to recoup the cost of both investments, which is essential for managing financial risk. The expected annual cash flows for these investments are $14,000 for the laboratory and $12,500 for the EHR software. Using this information, calculate the payback period for each investment and complete the table below
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