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The initial investment for the project is $10 million. The after-tax incremental cash flows are: Year 1= $4 million;Year 2=$5million; Year 3=$5 million; Year 4=$3
The initial investment for the project is $10 million. The after-tax incremental cash flows are: Year 1= $4 million;Year 2=$5million; Year 3=$5 million; Year 4=$3 million. The discount rate (or required rate of return) is 7%.
- What is the ordinary payback period
- What is the discounted payback period
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