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Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 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 $1,000,000 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 $ 393,000
Year 2 $ 368,000
Year 3 $ 303,000
Year 4 $ 248,000
Year 5 $ 203,000

What is the payback period?

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