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Mr. B is the financial advisor of company ABC. The company is planning to undertake a project having initial investment of $400,000. The cash flows
Mr. B is the financial advisor of company ABC. The company is planning to undertake a project having initial investment of $400,000. The cash flows arising from the project are as follows: Year Cash flows $102,000 1 2 $145,000 3 $105,000 $160,000 5 $92,000 Expertise Before taking up the project, Mr. B decided to compute the discounted payback period of the project. If the discount rate is 12%, help him determine the discounted payback period
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