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Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $450,000. The company expect cash inflows
Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $450,000. The company expect cash inflows from this project as detailed below:
Year One Year Two Year Three Year Four
$200,000 $225,000 $275,000 $200,000
The appropriate discount rate for this project is 12%.
The discounted payback period for this project is closest to:
Answer
2.1 years
3 years
2.0 years
2.5 years
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