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Medi-Med is a not for profit medical clinic. They are buying a new piece of equipment. Med-Med's discount rate is 6%. The net cash flows
Medi-Med is a not for profit medical clinic. They are buying a new piece of equipment. Med-Med's discount rate is 6%. The net cash flows resulting from the investment in this new piece of equipment would be: Time 0 Yr 1 (day 365) Yr 2 (day 730) Yr 3 Yr 4 Yr 5 30,000 35,000 -150,000 30,000 40,000 50,000 What is the payback period for the equipment? A. Sometime during the second year of operation between the end of year 1 and the end of year 2 (i.e. day 366 and day 730) B. Sometime during the third year of operation between the end of year 2 and the end of year 3 C. Sometime during the fourth year of operation between the end of year 3 and the end of year 4 D. Sometime during the 5th year of operation between the end of year 4 and the end of year 5 E. This project does not pay itself back F. During the first year of operation (from day 1 - day 365)
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