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Blue Mountain Corp. is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The company expects
Blue Mountain Corp. is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The company expects cash inflows from this project as detailed below: Year One Year Two Year Three Year Four $100,000 $250,000 $200,000 $400,000 The appropriate discount rate for this project is 12%. The payback period for this project is closest to: 2.00 years 2.25 years 3.00 years 3.25 years
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