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Business, 21.12.2019 03:31 reaperqueen21

Oriental corporation has gathered the following data on a proposed investment project:
investment in depreciable equipment $ 200,000
annual net cash flows $ 50,000
life of the equipment 10 years
salvage value $ 0
discount rate 10 %
the company uses straight-line depreciation on all equipment. assume cash flows occur uniformly throughout a year except for the initial investment.
the payback period for the investment would be: multiple choice
a. 2.41 years
b. 0.25 years
c. 10 years
d. 4 years

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Oriental corporation has gathered the following data on a proposed investment project:
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