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What is the payback period

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Reference no: EM132953719

Problem - Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $114,000. The equipment will have an initial cost of $684,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $89,000, what is the payback period?

Reference no: EM132953719

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