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What is the project payback period

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The director of capital budgeting for Big Sky Health System, Inc. has estimated the following cash flows for a new service and has a cost of capital of 10%. What is the project's payback period?

Year: 0

Expected Net Cash Flow: $(100,000)

Year: 1

Expected Net Cash Flow: $70,000

Year: 2

Expected Net Cash Flow $50,000

Year: 3

Expected Net Cash Flow: $20,000

Reference no: EM131952058

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