Will you take the project if you follow the payback method

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You are evaluating a project with an initial investment of $500,000 and is expected to produce revenues of $125,000 per year for 10 years, with the first revenue in one year. Your cost of capital is 11% and your company's preferred payback period is three years or less. Will you take the project if you follow the payback method? What is the NPV of the project?

Reference no: EM131338665

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