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Find what is the payback period for the investment

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Problem 1: Springtime Flower Company provides flowers and other nursery products for decorative purposes in medium to large-sized restaurants and businesses. The company has been investigating the purchase of a new specially equipped van for deliveries. The van has a value of $123,750 with a seven-year life. The expected additional cash inflows are $27,500 per year. What is the payback period for this investment?

Reference no: EM132750774

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