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Jordan enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for 10 years. the firm has a maximum acceptable payback period of 8 years.

a. determine the payback period for this project.
b. shouldthecompanyaccepttheproject?whyorwhynot?

1 Answer

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Probabaly (A) It seems the most reasonable.

User Evan Conrad
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