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Vaughn is contemplating a capital investment of $19500. The cash flows over the project's five year life are projected as follows: Expected Annual Cash Inflows

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Vaughn is contemplating a capital investment of $19500. The cash flows over the project's five year life are projected as follows: Expected Annual Cash Inflows Expected Annual Cash Outflows Year 1 $6200 $1000 2 7800 2100 3 10200 2500 4 12000 3200 5 15500 2400 The asset will be depreciated using the straight-line method with no expected salvage value. The cash payback period is 0 241 years O 253 years 03.10 years O 2.54 years

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