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Larkspur Corp. is considering the purchase of a piece of equipment that costs $20000. Projected net annual cash flows over the projects life are: Year
Larkspur Corp. is considering the purchase of a piece of equipment that costs $20000. Projected net annual cash flows over the projects life are:
Year | Net Annual Cash Flow |
1 | $4000 |
2 | 10000 |
3 | 10000 |
4 | 7000 |
The cash payback period is
2.55 years.
1.95 years.
2.50 years.
2.60 years.
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