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Percy has been asked by his manager to perform an analysis of two particular business ventures. Zeus Electronics, will cost $400,000 today and another $100,000

Percy has been asked by his manager to perform an analysis of two particular business ventures. Zeus Electronics, will cost $400,000 today and another $100,000 in one years’ time, after which the project is expected to generate income of $100,000 every year. Percy knows that his company’s required rate of return for such projects is 10% per annum effective. 

Calculate the Pay Back Period (PBP) for Zeus Electronics.


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