The American Pharmaceutical Company (APC) has a policy that all capital investments must have a four-year or less discounted payback period in order to be considered for funding. The MARR at APC is 8% per year. Is the below project table able to meet this benchmark for funding?

ENGR.ECONOMIC ANALYSIS
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A2 The American Pharmaceutical Company (APC) has a policy that all capital investments must have a four-year or less discounted payback period in order to be considered for funding. The MARR at APC is 8% per year. Is the below project table able to meet this benchmark for funding?
End of Year
0
123 +
4
5-10
Net Cash Flow
-$275,000
-$35,000
+$55,000
+$175,000
+$250,000
+$100,000
Transcribed Image Text:End of Year 0 123 + 4 5-10 Net Cash Flow -$275,000 -$35,000 +$55,000 +$175,000 +$250,000 +$100,000
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