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Patterson Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $554,000, a 7-year life, and $150,000
Patterson Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $554,000, a 7-year life, and $150,000 salvage value. The increase in cash flow each year of the equipment's life would be as follows: Year 1 $117,000 Year 2 $109,000 Year 3 $107,000 Year 4 $ 96,000 Year 5 $ 93,000 Year 6 $ 88,000 Year 7 $ 82,000 What is the payback period? Multiple Choice 5.36 years 5.39 years What is the payback period? Multiple Choice 5.36 years 5.39 years 4.90 years 5.57 years
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