Acc350 Managerial Accounting: E26-19 Robinson Hardware is adding a new product line

Acc350 Managerial Accounting

E26-19 Using payback to make capital investment decisions
Robinson Hardware is adding a new product line that will require an investment of $1,454,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $300,000 the first year, $270,000 the second year, and $260,000 each year thereafter for eight years.

Compute the payback period.
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