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Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $580,000 Annual cash inflows $74,000 Salvage
| Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) |
| Investment required in equipment | $580,000 |
| Annual cash inflows | $74,000 |
| Salvage value | $0 |
| Life of the investment | 20 years |
| Discount rate | 11% |
| The payback period for the investment is closest to: (Round your answer to 1 decimal place.) |
| 1.0 years | |
| 0.1 years | |
| 5.8 years | |
| 7.8 years |
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Working Papers Volume 1 For Needles/Powers/Crossons Financial And Managerial Accounting 8th
Authors: Belverd E. Needles
8th Edition
0618777237, 978-0618777235
