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You are evaluating a capital budgeting project that will cost $35,000 Year 1 => $12,000 Year 2 --> $17,000 Year 3 --> $10,000 Year 4
You are evaluating a capital budgeting project that will cost $35,000 Year 1 => $12,000 Year 2 --> $17,000 Year 3 --> $10,000 Year 4 --> $5,000 The required return is 15% and the critical acceptance level is 2.5 years, Calculate the Payback period and determine whether or not the project should be accepted based solely on the Payback Period, The PP is 3.20 years and we should accept the project The PP is 2.20 years and we should reject the project The PP is 2.20 years and we should accept the project None of the other answers is correct The PP is 3.20 years and we should reject the project
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