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Today, Snack Foods, Inc. is investing $327,000 in some new potato chip-making equipment. The company expects the cash flows to increase by $76,000 a year for the next three years and $93,000 a year for the following two years as a result of this investment. How long must the firm wait until it recovers all of its initial investment?

a. 4.06 years

b. 4.13 years

c. 4.20 years

d. 4.35 years

e. 4.42 years

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91789461

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