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Calculate the break-even time

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Reference no: EM132529054

Bower Co. is reviewing a capital investment of $50,000. This project's projected cash flows over a five-year period are estimated at $20,000 each year.

Required:

Question (a) Calculate the payback period.

Question (b) Calculate the break-even time. Assume a 12% hurdle rate

Question (c) Using the results in (a) and (b), make a recommendation for the project.

Reference no: EM132529054

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