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Smith Co. is considering acquiring a manufacturing plant. The purchase price is $1,350,000. The owners believe the plant will generate net cash inflows of $325,000
Smith Co. is considering acquiring a manufacturing plant. The purchase price is $1,350,000. The owners believe the plant will generate net cash inflows of $325,000 annually. It will have to be replaced in seven years. Use the payback method to determine whether Smith should purchase this plant. Round to one decimal place
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