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A project costs 100,000 and has an operating cash flow of 10,000 in the first two years and 40,000 in the following three years. The

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A project costs 100,000 and has an operating cash flow of 10,000 in the first two years and 40,000 in the following three years. The project stops at the end of year 5 . Using the payback rule, is this project worth while with a payback of 3 years? Discuss the advantages and disadvantages of the payback rule. Would you go with the recommendations of the payback rule in this case? Explain

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