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ZanzabumX [31]
3 years ago
10

Worthington Inc. is considering a project that has the following cash flow data. What is the project's payback period?

Business
1 answer:
enyata [817]3 years ago
4 0

Answer:

The project's payback period is 2.5 years.

Explanation:

year       cash flow       comulative cash flow

0             -500                             -500

1               150                                -350

2               200                               -150

3                300

payback period = 2 years + 150-300

                           = 2.5 years

Therefore, The project's payback period is 2.5 years.

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