Question: the net initial investment for a new mainframe computer is 2,000,000 annual cash flows are expected to increase by 800,000 per year. The equipment has

the net initial investment for a new mainframe computer is 2,000,000 annual cash flows are expected to increase by 800,000 per year. The equipment has a 10-year useful life. What is the payback period?

A) 4 years

B) 2.50 years

C) 2 years

D) 1.75 years

E) 0.75 years

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