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Year Net Cash Flows Cumulative Net Cash Flows Initial $(250,000) $(250,000) 1 $40,000 2 $60,000 3 $80,000 4 $100,000 5 $120,000 Compute the cumulative net
Year | Net Cash Flows | Cumulative Net Cash Flows |
Initial | $(250,000) | $(250,000) |
1 | $40,000 | |
2 | $60,000 | |
3 | $80,000 | |
4 | $100,000 | |
5 | $120,000 |
- Compute the cumulative net cash flows for each year.
- Determine the payback period.
- Round your answer to one decimal place.
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