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    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?

    © BrainMass Inc. brainmass.com December 15, 2022, 7:41 pm ad1c9bdddf
    https://brainmass.com/business/payback-period-and-discounted-payback-period/payback-period-240697

    Solution Preview

    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

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