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Business, 07.05.2021 16:20 kimberly0367

Assume that a company is considering buying a new piece of equipment for $250,000 that would have a useful life of five years and a salvage value of $30,000. The equipment would generate the following estimated annual revenues and expenses: Revenues $ 150,000 Less operating expenses: Commissions $ 15,000 Insurance 5,000 Depreciation 44,000 Maintenance 30,000 94,000 Net operating income $ 56,000 What is the payback period for this investment

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