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The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.): Year 1 Year 2 Year 3 Year 4 Year 5 Investment
The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.):
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Investment | $ 32,000 | $ 12,000 | |||
Cash inflow | $ 0 | $ 8,000 | $ 20,000 | $ 16,000 | $ 16,000 |
Cash inflows occur evenly throughout the year. The payback period for this investment is:
Group of answer choices
4.5 years
3.0 years
4.0 years
3.5 years
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