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If an Asset Cost $270000 and Is Expected to Have

Question 88

Multiple Choice

If an asset cost $270000 and is expected to have a $60000 salvage value at the end of its twelve-year life and generates annual net cash inflows of $40000 each year the cash payback period is


A) 2.7 years.
B) 8.25 years.
C) 6.75 years.
D) 5.25 years.

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