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Feist Company has gathered the following data on a proposed investment project. (Note that this is the same data that was provided for the previous
Feist Company has gathered the following data on a proposed investment project. (Note that this is the same data that was provided for the previous question.)
Discount rate 10%
Life of the project 10 years
Cost of the investment $1,200,000
Annual cost inflows 240,000
Estimated salvage value 0
What is the payback period for the investment?
What is the simple rate of return on the investment?
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