What is the projects payback

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A manufacturing company is considering a 3 year project that cost $75,000. The project will generate after tax cash flows of $33,100 in year 1, $31,500 in year 2, $ $31,200 in year 3. Assume the firm proper rate of discount is 10% and that the forms tax rate if 40%.

What is the projects payback?

Is this an acceptable project if managements required payback is 2 years?

Reference no: EM133057053

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