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X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck X costs $32,000; Truck Y

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X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck X costs $32,000; Truck Y costs $48,000. The useful life of both is seven years, with the following estimated operating cash flows: Year Truck X Truck Y 1 $-6,000 $-7,000 2 -8,000 -4,000 3 -8,000 -3,000 4 -8,000 -3,000 5 -6,000 -3,000 6 -5,000 -2,000 7 4,000 -2,000 If X Company chooses Truck Y instead of Truck X, what is the payback period (in years)? OA: 2 B: 3 OC: 4 OD 5 OE: 6 OF: 7

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