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You are evaluating an investment project costing $43,000 initially. The project will provide $3,000 in after-tax cash flows in the first year, $4,000 in the
You are evaluating an investment project costing $43,000 initially. The project will provide $3,000 in after-tax cash flows in the first year, $4,000 in the second year and $6,000 each year thereafter for 10 years. The maximum payback period for your company is 9 years.
What is the payback period for this project?
Should your company accept this project?
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