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Capital Budgeting : Cash Flow and Payback

Tapley Dental Associates is considering a project that has the following cash flow data. What is the project's payback?

Year: 0 1 2 3 4 5
Cash flows: -$1,000 $300 $310 $320 $330 $340

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Solution Preview

PAYBACK = point in time where the inital investment is completely recovered:

Recovery ...

Solution Summary

In a brief, concise response, this solution calculates the project's payback using step by step calculation.

$2.19