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An Initial Investment of $180,000 Is Expected to Generate $100,000

Question 39

Multiple Choice

An initial investment of $180,000 is expected to generate $100,000 in annual cost savings over the asset's expected 3-year life.Assume straight-line depreciation and ignore income taxes.The payback period is _____.


A) 3.0 years
B) 0.88 years
C) 1.80 years
D) none of these answers is correct

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