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Calculate the payback period for each case

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Reference no: EM132701728

Problem - Folsom Advertising, Inc. is considering an investment in a new information system. The new system requires an investment of $1,800,000 and either has (a) even cash flows of $750,000 per year or (b) the following expected annual cash flows: $450,000, $225,000, $600,000, $600,000, and $150,000. Calculate the payback period for each case.

Reference no: EM132701728

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