Question: Quik silver is considering acquiring a manufacturing plant The purchase
Quik silver is considering acquiring a manufacturing plant. The purchase price is $1,236,100. The owners believe the plant will generate net cash inflows of $309,025 annually. It will have to be replaced in eight years. To be profitable, the investment payback must occur before the investment’s replacement date. Use the payback method to determine whether Quik silver should purchase this plant.
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