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The Rocky Racoon Store is considering expanding its current line of business and has developed the following expected cash flows for the project. What is
The Rocky Racoon Store is considering expanding its current line of business and has developed the following expected cash flows for the project. What is the payback period (in years), if the initial cost is $385,000? The company must get all its money back within three years, do you invest ? | |||||||||
Year | Cash Flow | ||||||||
1 | $ 145,000 | ||||||||
2 | $ 165,000 | ||||||||
3 | $ 100,000 | ||||||||
4 | $ 100,000 | ||||||||
5 | $ 145,000 | ||||||||
Please use excel to solve and show work. Thanks!
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