A company is evaluating three possible investments. The following information is provided by the company:...
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Accounting
A company is evaluating three possible investments. The following information is provided by the company:
Project A
Project B
Project C
Investment
$240,000
$54,000
$240,000
Residual value
0
18,000
38,000
Net cash flows:
Year 1
62,000
34,000
98,000
Year 2
62,000
25,000
68,000
Year 3
62,000
21,000
78,000
Year 4
62,000
18,000
38,000
Year 5
62,000
0
0
What is the payback period for Project A? (Assume that the company uses the straight-line depreciation method.) (Round your answer to two decimal places.)
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