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Oriental Corporation has gathered the following data on a proposed investment project: 14 Investment in depreciable equipment Annual net cash flows Life of the equipment
Oriental Corporation has gathered the following data on a proposed investment project: 14 Investment in depreciable equipment Annual net cash flows Life of the equipment Salvage value Discount rate $580,000 $ 74,000 20 years 11% 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 O 5.8 years o O 10 years o O 0.1 years o o 7.8 years
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