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DIY Construction Co is considering a new inventory system that will cost $750000. The system is expected to generate positive cash flows over the next four years in the amounts of $350000 in year one, $325000 in year two, $150000 in year three, and $180000 in year four. DYI's required rate of return is 8%.

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Question: What is the payback period of this project?

Note: Provide support for your underlying principle.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167742

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