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7. The Bakery Company is considering expanding its product line to include a new pastry. The estimated cash flows are listed below. The required return

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7. The Bakery Company is considering expanding its product line to include a new pastry. The estimated cash flows are listed below. The required return is 18%. The company uses a payback cutoff of 2.5 years. Under this evaluation method would they accept this project? Is this the best evaluation method? If not, use the best method to provide your recommendation. Year Pastry Product Cash Flows -$72,000 $30,000 $30,000 $15,000 $200,000

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