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What is the Payback Period and how to calculate it? G 1 PAYBACK PERIOD 5 Years PIZZA EQUIPMENT cutoff rate 2years 25000 YEAR O INVESTMENT

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G 1 PAYBACK PERIOD 5 Years PIZZA EQUIPMENT cutoff rate 2years 25000 YEAR O INVESTMENT (NOW) EXPECTED CASH FLOWS INCREMENTAL CASH FLOWS YEAR 1 REMAINING BALANCE 5000 10000 15000 O Partial Payback Remaining 16000 17000 10

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