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(Ignore income taxes in this problem.) The Higgins Company has just purchased a piece of equipment at a cost of $120,000. This equipment will reduce

(Ignore income taxes in this problem.) The Higgins Company has just purchased a piece of equipment at a cost of $120,000. This equipment will reduce operating costs by $60,000 each year for the next seven years. This equipment replaces old equipment which was sold for $6,000 cash. The new equipment has a payback period of: (Round your answer to 1 decimal place.)

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