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ROUND TO TWO DECIMAL PLACES Payback period Jordan Enterprises is considering a capital expenditure that requires an initial investment of $61,000 and returns after-tax cash

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ROUND TO TWO DECIMAL PLACES

Payback period Jordan Enterprises is considering a capital expenditure that requires an initial investment of $61,000 and returns after-tax cash inflows of $10, 667 per year for 10 years. The firm has a maximum acceptable payback period of 8 years. a. Determine the payback period for this project. b. Should the company accept the project

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