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A project costing $400 is to be depreciated straight-line over the 5 year life of the project to zero salvage value. Net income resulting from
A project costing $400 is to be depreciated straight-line over the 5 year life of the project to zero salvage value. Net income resulting from the project amounts to $100 in years one and two and $150 in years 3 through 5. The project cash flows should be discounted at 14%. Ignore taxes and assume that the income stream of the project is also its cash flows. 3. What is the payback period for the project?
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