(Answered) Exercisepayback methodthe happy day care center is

Accounting

Exercise

Payback Method

The Happy Day Care Center is considering an investment that will require an initial cash outlay of $300,000 to purchase nondepreciable assets that have a 10-year life. The organization requires a minimum 4-year payback.

Required:

Assume that the investment generates equivalent annual cash flow. What minimum amount of annual cash flows must be generated by the project for the company to make the investment?

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