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Porter Company is analyzing two potential investments. Project X Project Y Initial investment $ 68,000 $ 60,000 Net cash flow: Year 1 24,000 4,000 Year

Porter Company is analyzing two potential investments. Project X Project Y Initial investment $ 68,000 $ 60,000 Net cash flow: Year 1 24,000 4,000 Year 2 24,000 26,000 Year 3 24,000 26,000 Year 4 0 20,000 The payback period in years (rounded to 2 decimal places) for Project X is:

Porter Company is analyzing two potential investments.

Project X Project Y
Initial investment $ 68,000 $ 60,000
Net cash flow:
Year 1 24,000 4,000
Year 2 24,000 26,000
Year 3 24,000 26,000
Year 4 0 20,000

The payback period in years (rounded to 2 decimal places) for Project X is:

Multiple Choice

2.00.

3.83.

3.50.

2.83.

4.00.

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