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Gibson Hardware is adding a new product line that will require an investment of $ 1,550,000. Managers estimate that this investment will have a 10-year
Gibson Hardware is adding a new product line that will require an investment of $ 1,550,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $ 325,000 the first year, $ 285,000 the second year, and $ 230,000 each year thereafter for eight years. The investment has no residual value. Compute the payback period.
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