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Financial Appraisals Inc. is considering purchasing new software. Determine the payback period (in years) for this project. Software initial cost is $56,000 and would yield after-tax cash flows of $14,000 the first year, $16,000 the second year, $19,000 the third year, $21,000 the fourth year, $25,000 the fifth year, and $31,000 the sixth year.

Financial Management, Finance

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  • Reference No.:- M91418019

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