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1. Initial Investment: $50,000 2. Year 1 Cash Inflow: $40,000; Year 1 Cash Outflow: $10,000 3. Annual Growth of Cash Inflow: 50% 4. Annual Growth

1. Initial Investment: $50,000

2. Year 1 Cash Inflow: $40,000; Year 1 Cash Outflow: $10,000

3. Annual Growth of Cash Inflow: 50%

4. Annual Growth of Cash Outflow: 0%

5. Value of initial investment in year 3, $10,000

6. Cost of Capital: 15%

7. You would like to receive your initial investment back in 2 years or less.

How long in years will it take to recoup your investment?

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