Pearl manufacturing is considering an investment in, Ask an Expert

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Pearl manufacturing is considering an investment in equipment costing $480,000. The equipment will be depreciated on a straight-line basis over a five-year period with an estimated residual value of $120,000. The expected net cash inflows from the investment are:

year1: $70,000

year2: 80,000

year3: 120,000

year4: 120,000

year5: 120,000

Total: 510,000

Calculate the payback period for this investment.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9970238

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