Question: Jones will pay $100,000 for a machine that will generate the following cash flows: YEAR CASH FLOW 1 2 3 4 $10,000 $10,000 $10,000 $10,000
Jones will pay $100,000 for a machine that will generate the following cash flows: YEAR CASH FLOW 1 2 3 4 $10,000 $10,000 $10,000 $10,000 $30,000 $20,000 $40,000 $30,000 5 6 7 The payback period for the investment is: 10 years 6.25 years 7 years 6.5 years 7.5 years
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