A company is considering the purchase of a new piece of equipment Custom Essay

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A company is considering the purchase of a new piece of equipment for $84,000. Predicted annual cash inflows from this investment are $44,000 (year 1), $30,000 (year 2), $16,000 (year 3), $15,000 (year 4) and $7,000 (year 5). The payback period is:
2.13 years.
3.63 years.
3.38 years.
2.63 years.
1.63 years.

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