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    Financial Problem: Determining the payback period for the project.

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    An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $28,000 for the next 5 years. The firm's cost of capital is 12%. Determine the payback period for the project.

    © BrainMass Inc. brainmass.com February 24, 2021, 2:35 pm ad1c9bdddf
    https://brainmass.com/business/payback-period-and-discounted-payback-period/determining-payback-period-project-30610

    Solution Summary

    Payback period for the project is determined in the solution.

    $2.19

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