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Janelle Melinda Company is considering a capital expenditure that requires an initial investment of $45,000 and returns after-tax cash inflows of $5,000 per year for
Janelle Melinda Company is considering a capital expenditure that requires an initial investment of $45,000 and returns after-tax cash inflows of $5,000 per year for 12 years. The firm has a maximum acceptable payback period of 7 years. a) Determine the payback period for this project. b) Should the company accept the project? Why or why not?
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