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You are evaluating a company's potential project to see if it should be taken. The company is currently under financial difficulty and can only take
You are evaluating a company's potential project to see if it should be taken. The company is currently under financial difficulty and can only take projects that can be paid back in 2.2 years or shorter time. The following table shows the project's cash flow over years, calculate the project's cumulative cash flow in each year and use the result to compute its payback time. Should this project be acceptable, using its payback method?. (You must show your work to earn credit. )
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