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A project will require an investment of $110,000. Anticipated cash flows are: $25,000 in each of years 1 and 2; $45,000 in year three; and

A project will require an investment of $110,000. Anticipated cash flows are: $25,000 in each of years 1 and 2; $45,000 in year three; and $30,000 in years 4 - 7. The payback period for this investment is:

a. 3.33 years. b. 3.5 years. c. 4.0 years. d. 3.0 years.

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