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Orange Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $450,000 90,000 Annual net cash flows Life of the
Orange Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $450,000 90,000 Annual net cash flows Life of the equipment 10 years Salvage value S 0 Discount rate 7% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment The payback period for the investment would be: Multiple Choice 3.0 years 1.0 years 5.0 years
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