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Target is considering establishing a new store in New York. The store has an estimated useful life of 20 years with no salvage value at
Target is considering establishing a new store in New York. The store has an estimated useful life of 20 years with no salvage value at the end of the 20 years (a reconstruction will be required after that. Target estimates the store has an IRR of 12%, and the company uses 12% discount rate for the purpose of decision-making. What is the payback period for the new store?
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