Question: Payback Refer to Problem 12-1. What is the projects payback period? Data from Problem 12-1 Project K has a cost of $52,125, its expected net

Payback Refer to Problem 12-1. What is the project’s payback period?

Data from Problem 12-1

Project K has a cost of $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its cost of capital is 12 percent. Begin by constructing a time line.

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Year CF Cumulative CF 0 52125 52125 1 12000 40125 2 12000 28125 3 12000 16125 4 12000 4125 ... View full answer

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