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X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $35,000; Truck 2

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X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $35,000; Truck 2 costs $43,000. The useful life of both is seven years, with the following estimated operating cash flows: Truck Truck Year 1 2 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 2 instead of Truck 1, what is the payback period (in 6 years)

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