Question
c. Project C costs $8,000 and will generate net cash inflows of $3,750 before taxes for 5 years. The firm uses straight-line depreciation with
c. Project C costs $8,000 and will generate net cash inflows of $3,750 before taxes for 5 years. The firm uses straight-line depreciation with no salvage value and is subject to a 20% tax rate. What is the payback period under the assumption that all cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.)
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
