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Instructions: In this section, please show all calculations. Partial credit will be given wherever possible, when your calculations are shown and they are completed correctly.

A firm is evaluating a capital budgeting proposal which has an initial investment at t = 0 of $75,000. This project has the following has inflows: $30,000 in Year 1; $35,000 in Year 2; and $15,000 in Year 3. What is the payback period for this project?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92881016

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