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stellarik [79]
3 years ago
8

A proposed new venture will cost $85,000 and should produce annual cash flows of $30,000, $55,000, $40,000, and $40,000 for Year

s 1 to 4, respectively. The discount rate is 10 percent. What is the payback period
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
4 0

Answer:

2 years

Explanation:

Payback period is the amount of time it takes to recover the amount invested in a project from its cumulative cash flows

In the first year, -$85,000  + $30,000 = -$55,000 is recovered

In the second year, -$55,000 + $55,000 = 0

The total amount invested is recovered in the second year

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For a defense of Duress/Coercion/Compulsion: the person must be forced to commit the offence. The person under duress (illegal coercion usually through being threatened or the use of violence) must be present when the offence is committed. The person must believe that the threat will be carried out.

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