Assume that the discount rate is 5 percent and answer Problem 14. Data from Problem 14 A

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Assume that the discount rate is 5 percent and answer Problem 14.

Data from Problem 14

A company uses a 10 percent discount rate. Assume equal annual cash proceeds.

What should be the maximum acceptable payback period for equipment whose life is 5 years? What are the maximum acceptable paybacks for lives of 10, 20, and 40 years and infinite life?

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