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required information [The following information applies to the questions displayed below.] Proiect A requires a $450,000 init

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Answer #1

Depreciation expense per year = ($450,000 - $47,500) / 5 = $80,500

Net cash flows = $25,400 + $80,500 = $105,900

Choose Numerator / Choose Denominator = Payback Period
Initial investment / Net cash flows = Payback Period
$450,000 / $105,900 = 4.25
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