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Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $108,000. The equipment will have an initial cost of $540,000 and have a 6 year life. If the salvage value of the equipment is estimated to be $83,000, what is the payback period? Ignore income taxes. Multiple Choice 4.23 years 5.00 years a 5.77 years Multiple Choice 4.23 years 5.00 years 577 years O 8.00 years
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