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First Choice Carpets is considering purchasing new weaving equipment costing $ 728 comma 000$728,000. The? company's management has estimated that the equipment will generate cash
First Choice Carpets is considering purchasing new weaving equipment costing
$ 728 comma 000$728,000.
The? company's management has estimated that the equipment will generate cash inflows as? follows:
Year 1 | $ 212 comma 000$212,000 |
2 | 212 comma 000212,000 |
3 | 260 comma 000260,000 |
4 | 260 comma 000260,000 |
5 | 154 comma 000154,000 |
Considering the residual value is? zero, calculate the payback period.? (Round your answer to two decimal? places.)
A.
3.773.77
years
B.
4.454.45
years
C.
3.573.57
years
D.
3.173.17
years
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