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Q. A capital budgeting project has a net investment of $550,000 and is expected to generate net cash flows of $200,000 annually for 7 years.

Q. A capital budgeting project has a net investment of $550,000 and is expected to generate net cash flows of $200,000 annually for 7 years. What is the payback period?

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a.2.55 years

b.2.25 years

c.2.75 years

d.5.5 years

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