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Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,200,000 and a 5-year life. There
Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,200,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows: Year 1 $ 375,000 Year 2 $ 350,000 Year 3 $ 285,000 Year 4 $ 380,000 Year 5 $ 185,000 What is the payback period? A. 2.96 years B. 2.39 years C. 3.50 years D. 3.81 years.
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