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What the payback period for this investment

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Reference no: EM133171857

Question - Assume the following Information for a capital budgeting proposal with a five-year time horizon:

Initial investment:

Cost of equipment (zero salvage value) $540,000

Annual revenues and costs:

Sales revenues $300,000

Variable expenses $130,000

Depreciation expense $50,000

Fixed out-of-pocket costs $40,000

Required - What the payback period for this investment?

Reference no: EM133171857

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