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You are logged in as Yehan Suppose you are thinking about buying a car to run an Uber business. You believe that the cash revenues
You are logged in as Yehan Suppose you are thinking about buying a car to run an Uber business. You believe that the cash revenues from this business will be $20,000 per year, assuming everything goes as expected. Total costs (including applicable taxes and tax savings) will be $15,000 per year, yielding an annual cash inflow of $5,000. You will wind down this business in eight years' time, and the car will be worth nothing at that time. The project costs $30,000 to lunch, including buying the car. We use a 15% discount rate on new projects such as this one. What is the payback period for this Uber business? Select one: O a. 3 years O b. 6 years O c. Cannot be determined based on given information O d. 5 years O e. 4 years Next page age
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