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Payback Period 4 If a project costs $100,000 and is expected to return $25,000 annually, how long does it take to recover the initial investment?
Payback Period 4 If a project costs $100,000 and is expected to return $25,000 annually, how long does it take to recover the initial investment? What would be the discounted payback period at i = 15%? Refer to Problem 4, and answer the following questions: (a) How long does it take to recover the investment? (b) If the firm's interest rate is 15% after taxes, what would be the discounted payback period for this project? S
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