A project has the following cash flows. What is the payback period? Year Cash Flow 0...

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Question

A project has the following cash flows. What is the payback period?

business finance

Answer 1

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Answer #1

Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).

=2+(4600/5000)

=2.92 years.

Answer 2

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