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Payback period
The Bingo Corporation is considering a project which has an up-front cost paid today at t = 0. The project will generate positive cash flows of $85,000 a year at the end of each of the next five years. The project's NPV is $100,000 and the company's WACC is 10 percent. What is the project's simple, regular payback?

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The solution explains how to calculate the payback period

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Payback period is the time taken to recover the initial investment.
We first calculate the initial ...

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