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A Capital Investment Requiring One Initial Cash Outflow Is Forecast

Question 78

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A capital investment requiring one initial cash outflow is forecast to have the operating profits listed below. The investment has an NPV of $20,850, based on a required rate of return of 12%. Calculate the payback period of the investment. A capital investment requiring one initial cash outflow is forecast to have the operating profits listed below. The investment has an NPV of $20,850, based on a required rate of return of 12%. Calculate the payback period of the investment.

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