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ABC Company purchased equipment having a cost of $150,000. It is expected that the equipment...

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Accounting

ABC Company purchased equipment having a cost of $150,000. It is expected that the equipment will generate annual net cash inflows of $40,000 per year and the equipment has an expected 8-year life. ABC Company employs a cost of capital of 14% on all capital projects. The payback period on the machine is equal to:

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