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Project A requires a $320,000 initial investment for new machinery with a five-year life and a salvage value of $40,000. The company uses straight-line depreciation.

Project A requires a $320,000 initial investment for new machinery with a five-year life and a salvage value of $40,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $24,600 per year for the next five years.

Compute Project A's payback period

Choose Numerator/Choose Denominator=Payback period

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