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What is the payback period

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Question - Main Auto buys a piece of equipment for $52,400 that has a useful life of 4 years. The equipment will generate operating cash flows of $17,450 per year and will have no salvage value at the end of its life. The income tax rate is 35%. Straight-line depreciation is used. What is the payback period?

Reference no: EM132095724

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