Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Transcribed Image Text:A retail company is considering a new inventory management
system that requires an initial investment of $72,000. The system is
expected to generate annual net cash inflows of $18,000 for 5 years.
The company's cost of capital is 12%. What is the simple payback
period? Round your answer to two decimal places.
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