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X company is considering producing and selling a new

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X Company is considering producing and selling a new product with a useful life of 6 years. Production of the product will require the purchase of new equipment costing $80,000. At the end of 6 years, the equipment can be sold for $10,000. Cash infows from this product will be $60,000; cash outflows will be $40,000. What is the payback period for this investment (in years)?

Reference no: EM13579250

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