Rent-to-own equipment co. is considering a new inventory, Ask an Expert

Management Studies

Rent-to-Own Equipment Co. is considering a new inventory system that will cost $450,000. The system is expected to generate positive cash flows over the next four years in the amounts of $250,000 in year one, $125,000 in year two, $110,000 in year three, and $80,000 in year four. Rent-to-Own's required rate of return is 10%. What is the payback period of this project?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9109399

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