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Marquette Fishery, a local fish farm, is considering purchasing a new plot of land for their business for $500,000. The land would allow Marquette
Marquette Fishery, a local fish farm, is considering purchasing a new plot of land for their business for $500,000. The land would allow Marquette Fishery to increase their pre-tax cash flows by $150,000 each year. The company would plan to keep the land for 10 years before selling it for $500,000. Because the land is real property, the company would not take any related depreciation. Marquette Fishery's tax rate is 28%, and the required rate of return is 10% What is the Cash Payback Period of the proposed investment?
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