4. A project has the following cash flows. What is the payback period? Year Cash Flow...

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Answer 1

Answer #1

Payback period is the time within which cost of project is recovered back.

Year	Cash flow	Cumulative cash flow
1	-46000	-46000
2	13500	-32500
3	22900	-9600
4	8400	-1200
5	5600	4400

Payback period		=	4+(1200/5600)
		=	4.21 Years

Answer 2

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