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The following details are provided by a manufacturing company: Product line Investment $1,120,000 Useful life 14 years Estimated annual net cash inflows for first year
The following details are provided by a manufacturing company: Product line Investment $1,120,000 Useful life 14 years Estimated annual net cash inflows for first year $400,000 Estimated annual net cash inflows for second year $420,000 Estimated annual net cash inflows for next ten years $370,000 Residual value $70,000 Depreciation method Straight-line Required rate of return 14% Calculate the payback period for the investment. (Round your answer to two decimal places.) O A. 2.97 years O B. 2.73 years O c. 2.80 years OD. 2.81 years Click to select your
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