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Your company is considering the acquisition of a machine with an initial investment of $50,000, that will generate the following after-tax cash flows: year 1

Your company is considering the acquisition of a machine with an initial investment of $50,000, that will generate the following after-tax cash flows:

year 1 $28,000

year 2 $26,000

year 3 $24,000

If the company tax rate is 20% and the cost of capital is 12%, What is the payback period?

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