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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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