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Compute what is the payback period

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Problem

AMP, Inc. has invested $2, 165,800 on equipment. The firm uses payback period criteria of not accepting any project that takes then four years to recover costs. The company anticipates cash flows of $451,386, $512,178, $564,755, $764,997, $816,500, and $825,375 over the next 6 years. What is the payback period?

Reference no: EM131790026

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