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The company is considering acquiring a manufacturing plant. The purchase price is $1,236,100. The owners believe the plant will generate net cash inflows of $309,025
The company is considering acquiring a manufacturing plant. The purchase price is $1,236,100. The owners believe the plant will generate net cash inflows of $309,025 annually for the next eight years. It will have to be replaced after eight years. What is the payback period? (Hint: the payback period does not use the time value of money charts.)
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