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A company is considering a project that has an up-front cost paid today at t =...

A company is considering a project that has an up-front cost paid today at t = 0. The project will generate positive cash flows of $52,785 a year at the end of each for the next 6 years. The project’s NPV is $82,504 and the company’s return on the project is 8.9 percent. What is the project’s payback?

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Answer #1

In order to find the payback period we need to find the initial investment. the caluclation is below.

And the payback period caluclation is here,

The paybach period is 3Years and 2 months.

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