Investment generates equivalent annual cash flow

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The Happy Day Care Center is considering an investment that will require an initial cash outlay of $300000 to purchase non depreciable assets that have a 10-year life. The organization requires a minimum 4-year payback.

Assume that the investment generates equivalent annual cash flow. What minimum amount of annual cash flows must be generated by the project for the company to make the investment?

Reference no: EM13790092

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