Calculate the projects payback period

Reference no: EM133715824

Question: CQU is considering a research project that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for 10 years. The firm has a maximum acceptable payback period of 8 years. Assume the cost of capital is 10% per annum. a. Calculate the project's payback period.

Reference no: EM133715824

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