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5.2 Panhandle Corp, is considering three projects. Each project has an initial outlay of $50,000. Project A is expected to earn $16,000 per year for
5.2
Panhandle Corp, is considering three projects. Each project has an initial outlay of $50,000. Project A is expected to earn $16,000 per year for four years. Project B is expected to earn $70,000 in year four. Project C is expected to earn $4,000 in year one, $8,000 in year two, $18,000 in year three, $36,000 in year four. The WACC is 7%. How would project B's payback period change if the cash flow in year 4 was $65,000 instead of $70,000 ? Increase by 0.5 years Increase by 0.37 years Decrease by 0.5 years Decrease by 0.37 years Step by Step Solution
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