What is the payback period

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Problem

You discover the engine-oil additive your scientists developed three years ago makes a great men's after-shave once diluted properly using certain chemicals. How should you treat the original $125,000 of R&D expenditures that went into developing the engine-oil additive for your present decision regarding whether or not to begin production of the after-shave? Get the instant assignment help. A project costs $300 and has cash flows of $75 for the first three years and $50 in each of the project's last three years. If the discount rate is 15%, what is the payback period?

Reference no: EM133931757

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