Welcher,Inc.plans to purchase equipment with a cost of $142,500.The company expects annual cash inflows from the equipment of $30,000.The equipment has an estimated life of 8 years,no estimated salvage life,and a required rate of return is 6%.The payback period for the equipment is closest to

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The payback period is calculated by dividing the initial investment by the annual cash inflow. Here, $142,500 / $30,000 = 4.75 years, which is closest to 5 years.