Question: Sikes Hardware is adding a new product line that will require an investment of $1,476,000.Managers estimate that this investment will have a 10-year life and
Sikes Hardware is adding a new product line that will require an investment of $1,476,000.Managers estimate that this investment will have a 10-year life and generate net cash inflows of $320,000 the first year, $290,000the second year, and $240,000 each year thereafter for eight years. Compute the payback period. Round to one decimal place.
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