Payback period
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Jordan Enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.
a) Determine the payback period for this project
b) Should the company accept the project? Why or why not?
https://brainmass.com/business/payback-period-and-discounted-payback-period/payback-period-240697
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Jordan Enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cash inflows of ...
Solution Summary
The expert determines the payback period for the project. Whether the company should accept the project or not is determined.
$2.49