Aggressive corporation has a proposal for a project

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Reference no: EM131308167

Aggressive Corporation has a proposal for a project that will have the following cash flows in the next three years. The board of Aggressive will not approve any projects that will pay back in more than 3 years. What is the payback period and the discounted payback period for this project? The discount rate is 10%. Using each method, is it a “Go” or a “No Go?”

Investment Beginning of Year 1 200,000

Income End of Year 1 60,000

Income End of Year 2 80,000

Income End of Year 3 100,000

Reference no: EM131308167

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