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plant wil Root Products is considering acquiring a manufacturing plant. The purchase price is $900,000. The owners believe the plant will generate net cash inflows
plant wil Root Products is considering acquiring a manufacturing plant. The purchase price is $900,000. The owners believe the plant will generate net cash inflows of $300,000 annually. It will have to be replaced in eight years. To be profitable, the investment's payback period must occur before the investment's replacement date. Use the payback method to determine whether Root Products should purchase this plant. to determine whether Rot iabi.the intets First enter the formula, then calculate the payback period. Payback period years Determine whether Root should purchase this plant. The payback occurs ? when the plant must be replaced, so the payback method Y purchasing the plant
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