Given the cash flows in the table, calculate the payback period assuming the cash flows in years

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Given the cash flows in the table, calculate the payback period assuming the cash flows in years 1 to 4 occur evenly throughout the year. The required rate of return is 12%. Year Cash Flow 0 -110000 1 30000 2 40000 3 20000 4 40000 5 20000 6 20000

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Dec 15, 2023 05:25 AM

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Given the cash flows in the table, calculate the payback period assuming the cash flows in years

Question:

Year Cash Flow 0 -110000 1 30000 2 40000 3 20000 4 40000 5 20000 6 20000 Year Cash Flow 0 -110000 1 30000 2 40000 3 20000 4 40000 5 20000 6 20000

Expert Answer:

To calculate the payback period well sum the cash flows starting from year 1 unti... View the full answer

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