Calculate the payback period

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Question - An investment project that Premier Snowboards is considering costs $4,000 and has annual cash flows of $1,200 for 5 years.

a. Calculate the payback period.

b. Based on the payback rule, is this investment acceptable if the preset limit is 3 years? Explain your answer. Use the editor to format your answer.

Reference no: EM133107362

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