Business
Business, 05.05.2020 06:11, fabiolafrancklin10

Root Products is considering acquiring a manufacturing plant. The purchase price is $ 900,000. The owners believe the plant will generate net cash inflows of $ 300,000 annually. It will have to be replaced in eight years. To beâ profitable, theâ investment's payback period must occur before theâ investment's replacement date. Use the payback method to determine whether Root Products should purchase this plant.

First enter the formula, then calculate the payback period.

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Answers: 3

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