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A company wishes to buy new equipment for $10,500. The equipment is expected to generate...

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Accounting

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A company wishes to buy new equipment for $10,500. The equipment is expected to generate an additional $3,200 in cash inflows for six years. All cash flows occur at year-end. A bank will make a $13,000 loan to the company at a 11% interest rate so that the company can purchase the equipment. Use the table below to determine break-even time for this equipment Multiple Choice Break-even time is between five and six years. Break-even time is between two and three years. Break-even time is between four and five yeart. Break even time is between five and six years. Break-even time is between two and three years. Break-even time is between four and five years. This project will never break even. Break-even time is between three and four years

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