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Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively. |
Time: | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow | $5,100 | $1,280 | $2,480 | $1,680 | $1,600 | $1,480 | $1,280 |
Use the payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) |
Payback | years |
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