What is the payback period for the new product line

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Birch manufacturing is considering the addition of another product line to its offerings. Equipment needed to produce the new line will cost $210,100. Birch estimates that the net cash inflows from the new product line will be as follows:

Years 1-10 $18,270 (each year)

Years 11-15 $5,480 (each year)

Year 16-20$1,900

(A) What is the payback period for the new product line?

Reference no: EM131788496

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