A company is considering the purchase of a new piece of equipment for $91.000. It is...

 

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A company is considering the purchase of a new piece of equipment for $91.000. It is expected to produce the following net cash flows. The payback period is: Year 1 Year 2 Year 3 Year 4 Year 5 Net cash flows $ 36,500 $ 30,500 $ 18,500 $ 12,500 $ 6,500 2.98 years. O 2.49 years. O 4.44 years. O3.44 years. 3.72 years. A company is considering the purchase of a new piece of equipment for $91.000. It is expected to produce the following net cash flows. The payback period is: Year 1 Year 2 Year 3 Year 4 Year 5 Net cash flows $ 36,500 $ 30,500 $ 18,500 $ 12,500 $ 6,500 2.98 years. O 2.49 years. O 4.44 years. O3.44 years. 3.72 years.

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The payback period is the amount of time it takes for an investment to recoup its initial cost In th... View the full answer