Question: Shelley Company will pay $100,000 for a machine that will generate the following cash flows: YEAR CASH FLOW 1 $10,000 2 $10,000 3 $10,000 4

Shelley Company will pay $100,000 for a machine that will generate the following cash flows: YEAR CASH FLOW 1 $10,000 2 $10,000 3 $10,000 4 $10,000 5 $10,000 8 618 6 $20,000 7 $20,000 $30,000 The payback period for the investment is: O 10 years O 6.25 years O 7 years O 7.33 years O 7.5 years

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