Determine the payback period for this project

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Reference no: EM13811810

Jordan Enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for ten years. The firm has a maximum acceptable payback period of eight years.

Determine the payback period for this project.

Should the company accept the project? Why or why not?

Reference no: EM13811810

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