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Marigold Corp. is considering the purchase of a piece of equipment and has complied the following information One - time training cost 1 4 0

Marigold Corp. is considering the purchase of a piece of equipment and has complied the following information
One-time training cost 14000
Salvage value 22000
Useful life
5 years
Projected net annual cash flows over the project's life are:
Marigold uses the cash payback method as an initial screening tool and has a policy that the payback period should not be more than
half of the asset's useful life. Based on this, should Marigold move forward with further evaluation of the equipment purchase?
Yes, because the cash payback period of 2.78 years is less than the asset's 5-year useful life of the asset.
Yes, because the cash payback period of 2.36 years is less than half of the asset's 5-year useful life.
No, because the cash payback period of 2.53 years is longer than half of the asset's 5-year useful life.
No, because the cash payback 2.78 years is longer than half of the asset's 5-year useful life.
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