Firm is considering project that has initial investment

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A firm is considering a project that has an initial investment of $140,000 and is expected to produce cash inflows of $26,250 per year for 10 years. The firm’s cost of capital is 10.3%. What is the project’s payback period? If the hurdle rate is 5.5 years, should the project be accepted?

Reference no: EM131348598

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