Acme inc is considering a four-year project that has an, Ask an Expert

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Acme, Inc. is considering a four-year project that has an initial outlay or cost of $100,000. The respective future cash inflows from its project for years 1, 2, 3 and 4 are: $50,000, $40,000, $30,000 and $20,000. Will it accept the project if its payback period is 31 months?

Yes, because it pays back in 25 months.

No, because it pays back in over 31 months.

No, because it pays back in over 35 months.

Yes, because it pays back in 28 months.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91626116

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