Question: CA Chapter 9 Practice Problems 2 1. Consider the following ten-year project. The initial after-tax outlay or after-tax cost is $1,500,000. The future after-tax cash

CA Chapter 9 Practice Problems 2 1. Consider the following ten-year project. The initial after-tax outlay or after-tax cost is $1,500,000. The future after-tax cash inflows each year for years 1 through 10 are $400,000 per year. What is the payback period without discounting cash flows? *HINT: Similar to #1 on Practice Problems 1. Complete the table to help solve the problem. YEAR Cash Flow Yet to be recovered Percent of year recovered 0 -1,500,000 400,000 400,000 N 400,000 4 400,000 ANSWER: 3.75

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