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James Construction Co. is considering a new inventory system that will cost $1,050,000. The system is expected to generate positive cash flows over the next
James Construction Co. is considering a new inventory system that will cost $1,050,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $350,000 in year two, $150,000 in year three, and $250,000 in year four. The required rate of return is 8%. What is the Payback Period of this project?
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