Compute the payback period

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Question - Henry Hardware is adding a new product line that will require an investment of $1,512,000. Managers estimate that this investment will have a 10-yeat life and generate net cash inflows of $310,000 the first year, $270,000 the second year, and $240,000 each year thereafter for eight years. Compute the payback period. Round to one decimal point.

Using the information in Problem. Assume the project has no residual value. Calculate the Accounting Rate of Return for the investment..

Reference no: EM133034391

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