Ace Hardware is adding a new product line that will require an investment of $1,418,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $310,000 the first year, $280,000 the second year, and $230,000 each year thereafter for eight years. Compute the payback period. Round to one decimal place. The payback in years is

Ace Hardware is adding a new product line that will require an investment of $1,418,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $310,000 the first year, $280,000 the second year, and $230,000 each year thereafter for eight years. Compute the payback period. Round to one decimal place. The payback in years is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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