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Mora Corporation is evaluating the purchase of a new piece of equipment. The equipment has an initial investment of $60,000. The annual net cash flows
Mora Corporation is evaluating the purchase of a new piece of equipment. The equipment has an initial investment of $60,000. The annual net cash flows over the equipment's 7-year life are estimated to be as follows: Year Annual Net Cash Flow
Year 1 $5,000
Year 2 $10,000
Year 3 $15,000
Year 4 $30,000
Year 5 $50,000
Year 6 $10,000
Year 7 $10,000
What is the cash payback period? Group of answer choices
A. 7 years B. 5 years C. 4 years D. 6 years E. 3 years
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