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A firm is considering investing in a project (project A) with the following cash flows: Initial investment = -9000 Cash flow in period 1 =

A firm is considering investing in a project (project A) with the following cash flows: Initial investment = -9000 Cash flow in period 1 = 3100 Cash flow in period 2 = 3500 Cash flow in Period 3 = 3300 Suppose that the cost of capital is 5.5% 11.1

According to the payback rule, should you undertake the project? Why? or Why not?

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