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Pina Colada Corp. is considering the purchase of a piece of equipment that costs $15000. Projected net annual cash flows over the projects life are:
Pina Colada Corp. is considering the purchase of a piece of equipment that costs $15000. Projected net annual cash flows over the projects life are: Year Net Annual Cash Flow
1- $2000
2- 10000
3 -25000
4 -11000
The cash payback period is
1.40 years.
2.12 years.
2.67 years.
2.93 years.
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