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Suppose $70,000 can be invested in 2 separate investments with the following cash flows: Investment A Investment B Year 0 $(70,000) $(70,000) Year 1 35,000
Suppose $70,000 can be invested in 2 separate investments with the following cash flows:
| Investment A | Investment B | |
| Year 0 | $(70,000) | $(70,000) |
| Year 1 | 35,000 | 5,000 |
| Year 2 | 35,000 | 5,000 |
| Year 3 | 20,000 | 60,000 |
| Year 4 | 0 | 35,000 |
What is the payback period for B?
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Inside Private Equity
Authors: James M. Kocis, James C. Bachman IV, Austin M. Long III, Craig J. Nickels
1st Edition
0470421894, 978-0470421895
