assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for the initial year). Nivea-Corporation invested the amount in a project and generated the following sequence of cash flows over six years:   Year   Cash Flow ($ million)   0 -59 1 4 2 5 3 6 4 7.33 5 8 6 8.25 Calculate the Payback period

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter19: Capital Investment
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Problem 22E
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From Part A above, assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for the initial year). Nivea-Corporation invested the amount in a project and generated the following sequence of cash flows over six years:  

Year   Cash Flow ($ million)  
0 -59
1 4
2 5
3 6
4 7.33
5 8
6 8.25
  1. Calculate the Payback period
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