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Payback Period for the Project Assignment

Author:
February 18th, 2020

Intro

You are evaluating an investment project costing $28,000 initially. The project will provide $3,000 in after-tax cash flows in the first year, $4,000 in the second year and $7,000 each year thereafter for 10 years. The maximum payback period for your company is 6 years.

 

Part 1

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