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Boulder Co is thinking about purchasing a new machine that would cost $336. The machine. has a salvage value of $85 and will be useful for 5 years. The cash flows that would be produced by the machine are: Year Cash Inflows Yr 1 $ 147 Yr 2 $ 150 Yr 3 $181 Yr 4 $147 Yr 5 $149 The payback period of this investment is closest to: O 2.2 years O 3.3 years O 5.0 years O 2.8 years O 3.0 years

Boulder Co is thinking about purchasing a new machine that would cost $336. The machine. has a salvage value of $85 and will be useful for 5 years. The cash flows that would be produced by the machine are: Year Cash Inflows Yr 1 $ 147 Yr 2 $ 150 Yr 3 $181 Yr 4 $147 Yr 5 $149 The payback period of this investment is closest to: O 2.2 years O 3.3 years O 5.0 years O 2.8 years O 3.0 years

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Boulder Co is thinking about purchasing a new machine that would cost $336. The machine has a salvage value of $85 and will be useful for 5 years. The cash flows that would be produced by the machine are: Year Yr 1 $147 Yr 2 $150 Yr 3 $181 Cash Inflows Yr 4 $147 Yr 5 $ 149 The payback period of this investment is closest to: 2.2 years O 3.3 years 5.0 years 2.8 years O 3.0 years
Transcribed Image Text:Boulder Co is thinking about purchasing a new machine that would cost $336. The machine has a salvage value of $85 and will be useful for 5 years. The cash flows that would be produced by the machine are: Year Yr 1 $147 Yr 2 $150 Yr 3 $181 Cash Inflows Yr 4 $147 Yr 5 $ 149 The payback period of this investment is closest to: 2.2 years O 3.3 years 5.0 years 2.8 years O 3.0 years
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