Question 12.1: How to Calculate Payback Suppose that a new car wash facilit...
How to Calculate Payback
Suppose that a new car wash facility requires an investment of $100,000 and either has (a) even cash flows of $50,000 per year or (b) the following expected annual cash flows: $30,000, $40,000, $50,000, $60,000, and $70,000.
Required:
Calculate the payback period for each case.
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