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Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 590,000 Annual net cash flows $ 74,000 Life
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 590,000 Annual net cash flows $ 74,000 Life of the equipment 16 years Salvage value $ 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:
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