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A project has estimated annual net cash flows of $34,500. It is estimated to cost $124,200....

A project has estimated annual net cash flows of $34,500. It is estimated to cost $124,200.

Determine the cash payback period. If required, round your answer to one decimal place.
years

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Answer #1

Formula to Calculate pay back Period is

Initial Investment / Annual net Cash Flows

Therefore ,

Initial Investments = $124,200

Annual Net cash flows = $34,500

Payback Period = $124,200 / $34,500

Payback Period = 3.6 Years.

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