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Generic Motors Corporation is planning to invest $50,000 in year zero (today) in new equipment. This investment is expected to generate net cash flows of
Generic Motors Corporation is planning to invest $50,000 in year zero (today) in new equipment. This investment is expected to generate net cash flows of $20,000 a year for the next 4 years(years 1-4). The salvage value after 4 years is zero. The discount rate (cost of capital) is 20% ayear. years. (Round to one decimal, for example, 3.2 years) The payback period for this project is The modified payback period for this project is between The Accounting Rate of Return of this project is and years. %
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