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A company is considering investing $200,000 in a project with the following anticipated net cash flows: Year 1: $65,000 Year 2: $50,000 Year 3: $55,000

A company is considering investing $200,000 in a project with the following anticipated net cash flows:

  • Year 1: $65,000
  • Year 2: $50,000
  • Year 3: $55,000
  • Year 4: $35,000
  • Year 5: $40,000
  • Year 6: $50,000

In what year will payback occur?

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