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Today, Amsterdam Inc. is investing $100,000 in some new equipment. The company expects the cash flows to increase by $40,000 a year for the next

Today, Amsterdam Inc. is investing $100,000 in some new equipment. The company expects the cash flows to increase by $40,000 a year for the next three years and $50,000 a year for the following five years because of this investment. 


How long must the firm wait until it recovers all of its initial investment?

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