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The Mayfield Company is considering a project that will require an i

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The Mayfield Company is considering a project that will
require an initial investment of $24,000 and is expected to
generate future cash flows of $3,000 each year for the next
10 years (1 point).
Required: Calculate the payback period in years.
Solution
Payback period in years = Initial investment / cash inflow
per period
Pay back period = 24000 / 3000 = 8 years

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The Mayfield Company is considering a project that will require an initial investment of $24,000 and is expected to generate future cash flows of $3,000 each year for the next 10 years (1 point). Required: Calculate the payback period in years. Solution Payback period in years = Initial investment ...
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