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Consider an investment with an initial cost of $15,000 and is expected to last for 5 years. The expected cash flow in years 1 and
Consider an investment with an initial cost of $15,000 and is expected to last for 5 years. The expected cash flow in years 1 and 2 are $5,000, in years 3 and 4 are $5,500 and in year 5 is $1,000. Compute the payback period in years.
a. | 2.91 years | |
b. | 3.37 years | |
c. | 3.81 years | |
d. | 4.22 years | |
e. | 4.53 |
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