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Logan Inc.is evaluating two possible investments in depreciable plant assets.The company uses the straight-line method of depreciation.The following information is available: Investment A Initial capital

Logan Inc.is evaluating two possible investments in depreciable plant assets.The company uses the straight-line method of depreciation.The following information is available:

Investment A

Initial capital investment$100,000

Estimated useful life10years

Estimated residual value0

Estimated annual net cash inflow for10years$20,000

Required rate of return10%

Calculate the payback period for Investment A.

Thank you

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