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Foster Manufacturing is analyzing a capital investment project that is forecast to produce the following cash flows and net income: After-Tax Year Cash Flows Net
Foster Manufacturing is analyzing a capital investment project that is forecast to produce the following cash flows and net income: After-Tax Year Cash Flows Net Income 0 $(20,000) $0 I 6,000 2,000 2 6,000 2,000 3 8,000 2,000 4 8,000 2,000 The payback period will be: a. 2.5 years b. 3.0 years c. 3.3 years. d. 2.6 years
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