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Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment$450,000Annual net cash flows$90,000Life of the equipment10yearsSalvage value$0Discount rate7% The

Oriental Corporation has gathered the following data on a proposed investment project:

Investment in depreciable equipment$450,000Annual net cash flows$90,000Life of the equipment10yearsSalvage value$0Discount rate7%

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:

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