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A project has an initial cost of $73,075, expected net cash inflows of $14,000 per year...

A project has an initial cost of $73,075, expected net cash inflows of $14,000 per year for 8 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.

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Answer #1

payback period= initial cost/annual cash flows

=73,075/14,000

which is equal to

=5.22 years(Approx).

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