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Question 3.2 ( 6 marks 7,5 minutes) Rea Vaya transport services has been awarded a five-year contract to operate in the central business district (CBD)

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Question 3.2 ( 6 marks 7,5 minutes) Rea Vaya transport services has been awarded a five-year contract to operate in the central business district (CBD) of the City of Tshwane. The forecasted cash flows and the initial operational cost of the Rea Vaya transport services are shown below. Rea Vaya transport services can accept a payback period of three years or less. Calculate the payback period and advise whether Rea Vaya transport services should accept or decline doing business with City of Tshwane

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