Cowell Corporation is considering an investment in new equipment costing $155,000. The equipment will be...
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Accounting
Cowell Corporation is considering an investment in new equipment costing $155,000. The equipment will be depreciated on a straightline basis over a
fiveyear life and is expected to generate net cash inflows of $45,000 the firstyear, $65,000 the second year, and $90,000 every year thereafter until the fifth year. What is the payback period for this investment? The equipment has no residual value.
A.
2.04 years
B.
3.44 years
C.
2.50 years
D.
1.72 years
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