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Q5: CPP Company is considering a new investment proposal with a 15-year useful life. What is the payback period if the initial investment is

Q5: CPP Company is considering a new investment proposal with a 15-year useful life. What is the payback period if the initial investment is $378,000 with expected after-tax net cash flow of $63,000 and after-tax net income of $38,000? Should this investment be pursued? a. Calculate the payback period Payback period = b. Should we purchase this investment? Why or why not?

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