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What is the payback period

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Problem - A piece of equipment costs $24 000. It is expected to generate $7500 of annual cash revenues and $1500 of annual cash expenses. The disposal value at the end of the estimated 10-year life is $2000. What is the payback period?

a. 3.20 years

b. 6.67 years

c. 3.67 years

d. 4.00 years

Reference no: EM132453058

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