West Hill Hardware is adding a new product line that will require an investment of $1,500,000. Managers

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West Hill Hardware is adding a new product line that will require an investment of $1,500,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $310,000 the first year, $300,000 the second year, and $250,000 each year thereafter for eight years. The investment has no residual value. Compute the payback period.
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Managerial Accounting

ISBN: 978-0132890540

3rd edition

Authors: Karen W. Braun, Wendy M. Tietz

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