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Cash Payback period for a Service Company Janes Clothing Inc. is evaluating two capital investment proposals for a retail ouNet present value method The following data are accumulated by Geddes Company in evaluating the purchase of $120,000 of equip

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01) Location 1 Payback Period = Initial Investment/ annual cash inflow =$150000/30000 =5 YearsLocation 2 Year Cash Inflow Accumulated Cash Inflow - 150000 - 150000 59000 44000 29000 -91000 -47000 -18000 18000 31000 2500

Summery Location 1 5 years Location 2 4 years

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