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Vaughan Inc. has the opportunity to invest in a project that cost $800,000 and has a salvage value of $100,000. The project has a 10

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Vaughan Inc. has the opportunity to invest in a project that cost $800,000 and has a salvage value of $100,000. The project has a 10 year useful life and Vaughan uses the straight-ine method of accounting for depreciation Vaughan use the payback period to determine acceptabilty of a project - it pays back within 35% of its useful life Vaughan finds the project acceptable Ahor examination. Vaughan determined that this project would provide net income each year over the 10 year usatul life of $150,000 What is the payback period for this project and wil Vaughan Inc find it acceptable? OA years, and No, Vaughan Inc wil NOT find the project acceptable OB. 3 years, and Yes. Vaughan Inc WILL find the project acceptable OC. 4 years, and No, Vaughan Inc will NOT find the project acceptable D. 4 years and Yes, Vaughan Ine WILL find the project acceptable

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