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(Ignore taxes in this problem.) The Corporan Corporation is considering an investment that has the following data: Year 1 Year 2 Year 3 Year4 Year5
(Ignore taxes in this problem.) The Corporan Corporation is considering an investment that has the following data:
Year 1 | Year 2 | Year 3 | Year4 | Year5 | |
Investment | $9,000 | $5,000 | |||
Cash Flow | $5,000 | $2,000 | $2,000 | $3,000 | $4,000 |
Cash inflows occur evenly throughout the year. The payback period for this investment is:
a) 2.0 years
b) 3.5 years
c)4.0 years
d) 4.5 years
Please explain with visual and explain why it is 4.5 years. (show all calculations)
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