What is the payback period of this investment

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Question - Carla Vista Solutions, Inc., has just invested $5,487,300 in new equipment. The firm uses a payback period criteria of rejecting any project that takes more than four years to recover its costs. Management anticipates cash flows of $506,300, $980,400, $997,900, $1,383,300, $3,063,800, and $2,376,100 over the next six years.

What is the payback period of this investment?

Should Carla Vista Solutions, Inc. go ahead with this project?

Reference no: EM133177087

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