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determining the payback period

3. I have a project that will cost $150,000 to start (implementation costs) and there is no terminal cash flow. The operating cash flows over the next 5 years are as follows:

Revenue Operating Costs
Year 1 $25,000 $35,000
Year 2 55,000 30,000
Year 3 85,000 35,000
Year 4 100,000 40,000
Year 5 125,000 50,000
What is the payback period?

Solution Summary

Calculating the payback period

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