Michigan mattress company is considering the purchase of


Michigan Mattress Company is considering the purchase of land and the construction of a new plant. The land and building, which be bought immediately (at t = 0), has a cost of $74998. It is estimated that the firm's after-tax yearly cash flow will be a constant $6875 starting at of the end of the first year (t = 1). What is the approximate payback period in years (round your answer to two decimal places)?

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Financial Management: Michigan mattress company is considering the purchase of
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