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Johnny Cash was thinking about how much time it will take him to recover the $300 investment made to buy his guitar. The following table
Johnny Cash was thinking about how much time it will take him to recover the $300 investment made to buy his guitar. The following table contains the investment made and the cash flow he will receive for his concerts in the next years: Year 0 2 3 4 5 Cash flow -300 114 78 97 76 80 Since he acknowledged that instead of buying the guitar, he could have lent the money to any of his friends at a 10% annual interest rate he decided to ask you to tell him what the discounted payback period would be for his investment. Select one: O a. 4.09 b. 4.62 c. 4.86 d. 4.14 e. 3.14
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