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Grayson Corp. is considering the purchase of a piece of equipment that costs $29,233

Grayson Corp. is considering the purchase of a piece of equipment that costs $29,233. Projected net annual cash flows over the project's life are:

YearNet Annual Cash Flow
1 $5,181
216,784
319,816
419,675

The cash payback period is _______ . Round your answer by two decimals


business   accounting   
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Answer #1
Year Cash flows Cumulative Cash flows
0 -29233 -29233
1 5181 -24052
2 16784 -7268
3 19816 12548
Cash payback period 2.37 years =2+(7268/19816)
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