Consider the sample project with the cash flows shown in Table 13.2. Should this project be accepted

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Consider the sample project with the cash flows shown in Table 13.2. Should this project be accepted based on payback if the maximum allowable payback period is three years?

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M Finance

ISBN: 9781266827877

6th Edition

Authors: Marcia Cornett, Troy Adair, John Nofsinger

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Question Posted: May 29, 2024 09:01 AM

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Cummulative Cash Flow $0.00 $14.72 $14.72 $14.72 $14.72 $14.72 $14.72 $14.72 Payback Period 3 years #DIV/O! O 2 4 5 6 Discounted Cash Flow (DCF) Cummulative DCF Payback Period years
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Consider the sample project with the cash flows shown in Table 13.2. Should this project be accepted

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0 1 TABLE 13.2 Payback Calculation on Sample Project with Normal Cash Flows Year: 2 3 4 5 Cash flow -$10,000 $2,500 $3,500 $5,000 $4,000 $2,000 Cumulative cash flow -10,000 -7,500 -4,000 1,000

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M Finance

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