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A Company Is Trying to Decide Which of Two New

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A company is trying to decide which of two new product lines to introduce in the coming year. The predicted revenue and cost data for each product line follows: A company is trying to decide which of two new product lines to introduce in the coming year. The predicted revenue and cost data for each product line follows:   The company has a 30% tax rate, it uses the straight-line depreciation method, and it predicts that cash flows will be spread evenly throughout each year. Calculate each product's payback period. If the company requires a payback period of three years or less, which, if either, product should be chosen? The company has a 30% tax rate, it uses the straight-line depreciation method, and it predicts that cash flows will be spread evenly throughout each year. Calculate each product's payback period. If the company requires a payback period of three years or less, which, if either, product should be chosen?


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