Sheffield Corp. is considering the purchase of a piece of equipment that costs $20100. Projected net annual cash flows over the project's life are: Year Net Annual Cash Flow 1 $3300 7700 2 14200 3 4 9500 The cash payback period is O 2.34 years. O 2.64 years. O 2.32 years. O 2.36 years.
Sheffield Corp. is considering the purchase of a piece of equipment that costs $20100. Projected net annual cash flows over the project's life are: Year Net Annual Cash Flow 1 $3300 7700 2 14200 3 4 9500 The cash payback period is O 2.34 years. O 2.64 years. O 2.32 years. O 2.36 years.
Practical Management Science
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Transcribed Image Text:Sheffield Corp. is considering the purchase of a piece of equipment that costs $20100. Projected net annual cash flows over the
project's life are:
Year Net Annual Cash Flow
1
$3300
7700
2
14200
3
4
9500
The cash payback period is
O 2.34 years.
O 2.64 years.
O 2.32 years.
O 2.36 years.
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