Question

Asked Dec 5, 2019

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Please explain, I don't understand.

Step 1

Payback period is the time period in which a company recoup its investment amount. The project with shorter payback period is generally chosen.

Step 2

Given:

RRR = 20%

Initial cost = $5000

Cashflows for 5 years are as follows:

Step 3

Calculations:

(a)

Formula to calcul...

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