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Does the investment meet the company payback criteria

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Ford Ltd. is planning to invest $350,000 in a new manufacturing plant. The company uses payback period criteria of not accepting any project that takes more than 5 years to recover costs. The company anticipates cash flows of $65,000, $85,000, $120,000, $155,000, $160,000, and $160,000 over the next 6 years.

Question 1: Does this investment meet the company's payback criteria?

Reference no: EM132913420

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