Krate Inc. is considering a $600,000 investment in new equipment that is anticipated to produce the following net cash inflows:YearNet Cash Inflows1$120,000 2 250,000 3 110,000 4 80,000 5 160,000 If cash flows occur evenly throughout a year, the equipment's payback period is:

A. 4 years, 4 months.
B. 4 years, 3 months.
C. 5 years.
D. 4 years, 2 months.
E. some other period of time not noted.


Answer: B

Business

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