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Shelley Company will pay $100,000 for a machine that will generate the following cash flows: YEAR CASH FLOW 1 $10,000 2 $10,000 3 $10,000 4
Shelley Company will pay $100,000 for a machine that will generate the following cash flows:
YEAR | CASH FLOW |
1 | $10,000 |
2 | $10,000 |
3 | $10,000 |
4 | $10,000 |
5 | $10,000 |
6 | $20,000 |
7 | $40,000 |
8 | $30,000 |
The payback period for the investment is:
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