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Project A requires a $385,000 initial investment for new machinery with a five-year life and a salvage value of $44,000. The company uses straight-line depreciation.
Project A requires a $385,000 initial investment for new machinery with a five-year life and a salvage value of $44,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $28,800 per year for the next five years.
Compute Project A's payback period.
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