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Pinecrest is considering a $600,000 investment in new equipment that is anticipated to produce the following net cash inflows: Year Net Cash Inflows 1 $120,000
Pinecrest is considering a $600,000 investment in new equipment that is anticipated to produce the following net cash inflows:
Year Net Cash Inflows
1 $120,000
2 250,000
3 110,000
4 80,000
5 160,000
b. If cash flows occur evenly throughout a year, the equipment's discounted payback period is (discount rate = 10%)::
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