What is the payback period

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Question - A company invests in a new project that has an initial outlay of $375855. The project will generate annual net cash flows of $127202 over a period of 8 years. The after-tax cost of capital is 12%. What is the payback period (in years)?

a. 1.95

b. 2.95

c. 3.93

d. 8.00

Reference no: EM132776023

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