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What is the payback period on Popeye's purchase of a new pleasure boat for his tourist...

What is the payback period on Popeye's purchase of a new pleasure boat for his tourist business? The expected cash flows appear below. (note: payback is in years; round to 2 decimals)


Year 0 cash flow = -9,300,000

Year 1 cash flow = 4,300,000

Year 2 cash flow = 3,200,000

Year 3 cash flow = 4,300,000

Year 4 cash flow = 4,200,000

Year 5 cash flow = 4,400,000

Year 6 cash flow = 2,500,000

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Answer #1

cumulative cash flows -$9,300,000.00 -$5,000,000.00 -$1,800,000.00 $2,500,000.00 $6,700,000.00 $11,100,000.00 $13,600,000.00

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