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Problem:

AMP, Inc., has invested $2,165,800 on equipment. The firm uses payback period criteria of not accepting any project that takes more than four years to recover costs. The company anticipates cash flows of $436,386, $512,178, $564,755, $764,997, $816,500, and $825,375 over the next six years.

Required:

Question: What is the payback period?

Note: Provide support for your rationale.

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Category:- Basic Finance
Reference No.:- M91162346

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