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ABC Company is adding a new product line that will require an investment of $1500000. The product line is estimated to generate cash inflows of $300,000 the first year, $250000 the second year, and $200,000 each year thereafter for ten more years. What is the payback period?

A: 7.25 years

B: 6.00 years

C: 2.73 years

D: 6.75 years

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Accounting Basics, Accounting

Category:- Accounting Basics
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