Question - Eagle Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows.
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Annual Net Cash Flows
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Year 1
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$40,000
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Year 2
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$40,000
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Year 3
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$35,000
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Year 4
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$35,000
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Year 5
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$30,000
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The cash flows occur evenly throughout each year. Compute the payback period for this investment.