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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 $25,000
year 2 $24,000
year 3 $23,000
If the company tax rate is 20% and the cost of capital is 10%, What is the discounted payback period?
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