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What is the investment payback period

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Reference no: EM132859092

The expected profits from an $80,000 investment are $15,000 in Year 1 and $20,000 in each of Years 2 to 7.

Question a) What is the investment's payback period, to the nearest 0.01 year?

Question b) If the firm's required payback period is four years, will it make the investment?

Question c) If the firm's cost of capital is 8%, will it make the investment?

Reference no: EM132859092

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