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Assume a project has the following expected cash flows: Year Expected Net Cash Flow 0 ($400,000) 1 100,000 2 100,000 3 200,000 4 250,000 4.

Assume a project has the following expected cash flows:

Year Expected Net Cash Flow

0 ($400,000)

1 100,000

2 100,000

3 200,000

4 250,000

4. What is the projects payback (payback period)? 400,000/250,000

a. 2.00 years

b. 2.25 years

c. 2.50 years

d. 2.75 years

*e. 3.15 years

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