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XYZ Company is considering a project with an initial cost of $20,000. The project will produce cash flows of: $6,700 in year 1, $6,300 in

XYZ Company is considering a project with an initial cost of $20,000. The project will produce cash flows of: $6,700 in year 1, $6,300 in year 2, $5,000 in year 3, and $4,000 in year 4. What is the payback period?

2.5 years

3.5 years

4.5 years

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