Question: Hardware is adding a new product line that will require an investment of $1,454,000. Managers estimate that this investment will have a 10-year life and
Hardware is adding a new product line that will require an investment of
$1,454,000.
Managers estimate that this investment will have a 10-year life and generate net cash inflows of
$330,000
the first year,
$300,000
the second year, and
$230,000
each year thereafter for eight years. Compute the payback period. Round to one decimal place.
| The payback in years is |
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