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The oil exploration project costs $290 million upfront. The annual net benefit is expected to be $35 million. The company will only consider projects with
The oil exploration project costs $290 million upfront. The annual net benefit is expected to be $35 million. The company will only consider projects with payback period of less than 8 years. What is the payback period and is the project acceptable? 9 years; acceptable 8 years; reject 9 years; reject 8 years; acceptable
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