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russ e. breeds and raises horses. he is currently considering purchasing a new property that will cost $2,200,000. the property includes a barn and several horses. due to the unique nature of the business, the cash flows associated with the property occur at the end of every 6-month interval. russ estimates that the cash inflows will exceed the cash outflows by $82,000 each 6-month period. russ estimates he will sell the property in 30 years for $1,690,000. what is the payback period of the new property? round your answer to one decimal place. 10.3 years 26.8 years 13.4 years 6.2 years

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Russ e. breeds and raises horses. he is currently considering purchasing a new property that will cost $2,200,000.  The payback period for the new property is 13.4 years. Option C

What is the Payback Period?

Generally, The payback period is the amount of time it takes for the property to pay for itself based on the expected cash flows. To calculate the payback period, we need to determine how long it will take for the property to generate enough cash inflows to cover the initial cost of $2,200,000.

We can use the following formula to calculate the payback period:

Payback Period = Initial Investment / Annual Cash Inflows

Since the cash inflows occur at the end of every 6-month period, we need to multiply the expected cash inflow of $82,000 by 2 to get the annual cash inflow: $82,000 * 2 = $164,000.

Plugging this value into the formula, we get:

Payback Period = $2,200,000 / $164,000 = 13.4 years

So the payback period for the new property is 13.4 years.

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