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Oriental Company has gathered the following data on a proposed investment project: The company uses...

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Accounting

Oriental Company has gathered the following data on a proposed investment project: The company uses straight-line depreciation on all equipment.

Investment in depreciable equipment: $200,000

Annual cash flows: $50,000

life of equipment: 10 years

Salvage value: $0

Discount rate: 10%

Required:

What is the payback period for the investment?

What is the simple rate of return on the investment?

What is the net present value of this investment?

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