What is the project payback period

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Reference no: EM131609572

A project requires an investment of $120,000 today and it will generate after-tax cash flows of $40,000 at the end of year 1, $50,000 at the end of year 2, $15,000 at the end of year 3, and $15,000 at the end of year 4. The company’s weighted average cost of capital is 10.2% per year. What is the project’s payback period?

Reference no: EM131609572

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