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The Net Initial Investment for a New Mainframe Computer Is

Question 111

Multiple Choice

The net initial investment for a new mainframe computer is $2,000,000.Annual cash flows are expected to increase by $800,000 per year.The equipment has a 10-year useful life.What is the payback period?


A) 4.00 years
B) 2.50 years
C) 2.00 years
D) 1.75 years
E) 0.75 years

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