JFINEX Corporation is considering a newproject that will cost 165,000. It is expected togenerate cash flows over the next three yearsinthe amounts of +150,000 in year one, -20,000inyear two, and +80,000 in year three. Therequired rate of return is 7%. What is thepayback period of this project?"1.75 years2.44 years3.0 years2.65 yearsNone of the above

Payback period is the number of years required to recover the initial cost of an investment project.

Answered: payback period c

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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Similar questions

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Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is expected to generate future cash flows of $10,000 for years 1 through 3, $8,000 for years 4 and 5, and $2,000 for years 6 through 10. What is the payback period for this project?
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