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Investment Analysis: Initial investment: $130,000 Cash inflows: Year 1: $22,000 Year 2: $28,000 Year 3: $35,000 Year 4: $40,000 Year 5: $50,000 Tasks: Calculate the

Investment Analysis:

  • Initial investment: $130,000
  • Cash inflows:
    • Year 1: $22,000
    • Year 2: $28,000
    • Year 3: $35,000
    • Year 4: $40,000
    • Year 5: $50,000

Tasks:

  1. Calculate the payback period.
  2. Determine the year when cumulative cash flow turns positive.
Calculate the total cash inflow by the end of year 5.

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