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A capital project has the following cash flows over its useful life: Time 0 Time 1 Time 2 Time 3 Time 4 Cash flow (240,000)
A capital project has the following cash flows over its useful life:
| Time 0 | Time 1 | Time 2 | Time 3 | Time 4 | |
| Cash flow | (240,000) | 70,000 | 50,000 | 140,000 | 150,000 |
Calculate the payback period for this project:
| 2.13 years | ||
| 3.86 years | ||
| 2.86 years | ||
| 3.14 years |
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Public Finance
Authors: Harvey Rosen, Ted Gayer
8th Edition
0073511285, 9780073511283
