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Rinky Dink Family Fun Center Bought New Bumper Boats for Its

Question 46

Multiple Choice

Rinky Dink Family Fun Center bought new bumper boats for its recreation facility.The useful life is 6 years.The bumper boats had a total cost $5,338 and will generate $1,570 total cash inflows each year for the life of the boats.The residual value of the bumper boats is $650.The payback period in years is closest to:


A) 2.40.
B) 2.99.
C) 3.40.
D) 3.81.

Correct Answer:

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