The following details are provided by a manufacturing company: Product line Investment Useful life Estimated annual...
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The following details are provided by a manufacturing company: Product line Investment Useful life Estimated annual net cash inflows for first year Estimated annual net cash inflows for second year Estimated annual net cash inflows for next ten years Residual value Depreciation method Required rate of return $1,010,000 15 years $490,000 $370,000 $220,000 $70,000 Straight-line 14% Calculate the payback period for the investment. (Round your answer to two decimal places.) OA. 2.06 years OB. 6.2 years OC. 2.68 years OD. 5.73 years The following details are provided by a manufacturing company: Product line Investment Useful life Estimated annual net cash inflows for first year Estimated annual net cash inflows for second year Estimated annual net cash inflows for next ten years Residual value Depreciation method Required rate of return $1,010,000 15 years $490,000 $370,000 $220,000 $70,000 Straight-line 14% Calculate the payback period for the investment. (Round your answer to two decimal places.) OA. 2.06 years OB. 6.2 years OC. 2.68 years OD. 5.73 years
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