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Management at the Daily Grind wants to install an espresso bar in its restaurant that 1.Costs $140,000 and has a 10-year life. 2.Will generate annual

Management at the Daily Grind wants to install an espresso bar in its restaurant that

1.Costs $140,000 and has a 10-year life.

2.Will generate annual net cash inflows of $35,000.

Management requires a payback period of 5 years or less on all investments.

What is the payback period for the espresso bar?

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