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Bower Co.is reviewing a capital investment of $50,000.This project's projected cash flows over a five-year period are estimated at $20,000 each year.
Required:
a.Calculate the payback period.
b.Calculate the break-even time.Assume a 12% hurdle rate and use the table below:
c.Using the results in (a)and (b)make a recommendation for the project.
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