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Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $12,000, $14,000, $11,000, $13,000, and $11,000, respectively.

Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $12,000, $14,000, $11,000, $13,000, and $11,000, respectively.

What is the payback period?

If the firm accepts projects with payback periods of less than 3 years, will this project be accepted?

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