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The company is considering adding a new product line that will require an investment of $1,454,000. Management estimates that this investment will have a 10-year
The company is considering adding a new product line that will require an investment of $1,454,000. Management estimates that this investment will have a 10-year life and generate future net cash inflows of $310,000 the first year, $280,000 the second year and $240,000 each year thereafter for eight years. Compute the payback period. (Hint: the payback period does not use the time value of money charts.)
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