Shimizu Inc. has identified the following project with an initial investment (cash outflow) and projected...
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Shimizu Inc. has identified the following project with an initial investment (cash outflow) and projected future cash flows from years 1 through 7. OWN O Year Cash flow $ (250,000) 1 $ 41,000 2 $ 48,000 3 $ 63,000 4 $ 79,000 5 $ 88,000 6 $ 64,000 7 $ 41,000 1. The firm has a required payback period of 5 years. a. What is the payback period of the project Round your answer to two decimal places (e.g., 3.45 years). Show your complete work below or in the designated work space on the spreadsheet. 5pts. (If you provided your answer and work in Excel, write down See Excel" below.) b. According to the payback period rule, should the project be accepted? Provide a sentence or two to thoroughly explain and support your conclusion. Show your complete work below or in the designated work space on the spreadsheet. 5pts. (If you provided your answer and work in Excel, write down See Excel" below.)
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