Purchase of new pleasure boat for tourist business

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Reference no: EM132039099

What is the payback period on Popeye's purchase of a new pleasure boat for his tourist business? The expected cash flows appear below. (note: payback is in years; round to 2 decimals)

Year 0 cash flow = -10,500,000

Year 1 cash flow = 3,500,000

Year 2 cash flow = 4,000,000

Year 3 cash flow = 4,200,000

Year 4 cash flow = 3,300,000

Year 5 cash flow = 3,100,000

Year 6 cash flow = 4,000,000

Reference no: EM132039099

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