Sparky the Electrician specializes in rewiring historic houses. Sparky recently purchased a new

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device that will decrease the time to complete each job and increase total revenues. The device will cost $2,608 and will increase net cash flows by $1,630 per year. The new device has a useful life of 7 years and a residual value of $230. What is the payback period for the new

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device?

A.

1.74 years

B.

1.46 years

C.

1.60 years

D.

1.40 years