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Nestor Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur
Nestor Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the break-even time (BET) period for this investment. Annual Net Cash Flows Year o Year 1 Year 2 Year 3 Year 4 Year 5 $40,000 $40,000 $35,000 $35,000 $30,000 Present Value of $1 at 10% 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209
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