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Udeh Lumber is considering the purchase of a brand new saw that costs N50,000, which will generate N10,000 per year of net cash flow. Udeh

Udeh Lumber is considering the purchase of a brand new saw that costs N50,000, which will generate N10,000 per year of net cash flow. Udeh is also considering the purchase of a conveyor system for N36,000, which will reduce saw mill transport costs by N12,000 per year. Calculate the payback periods and suggest the one to venture into.

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