Consider the following cash flows: Year Cash Flow 0 -$5,100 1 1,500 2 2,600 3 1,300 4 1,000 Required: What is the payback period for the above set of cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Payback period years
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First, we need to calculate the cumulative cash flow for each year. To do this, we add up the cash flow for each year starting from year 1. Show more…
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