Orange Corporation has collected the following data about a proposed investment project Investment in depreciable equipment $ 690 000 Annual net cash flows $ 76 000 equipment life 16 year recovery value $ 0 Discount rate 6 The company uses the straight line method of depreciation on all equipment S...

To calculate the payback period we need to determine how long it will take for the company to recove ...

Orange Corporation has collected the following data about a proposed investment project: Investment in depreciable equipment $

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Orange Corporation has collected the following data about a proposed investment project:


Investment in depreciable equipment	$	690.000
Annual net cash flows	$	76.000
equipment life		16	year
recovery value	$	0
Discount rate		6	%

The company uses the straight-line method of depreciation on all equipment. Suppose the cash flows are the same throughout the year except for the initial investment.

The payback period of the investment will be ?

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Essentials of Managerial Finance

ISBN: 978-0324422702

14th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Apr 07, 2023 09:17 AM

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Orange Corporation has collected the following data about a proposed investment project: Investment in depreciable equipment $

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Essentials of Managerial Finance

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