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Your firm has a project opportunity with the following cash flows: -$1,200,000 in Year 0, $150,000 in Year 1, $295,000 in Year 2, $875,000 in
Your firm has a project opportunity with the following cash flows: -$1,200,000 in Year 0, $150,000 in Year 1, $295,000 in Year 2, $875,000 in Year 3, and $390,000 in Year 4. Your ACC is 12%. What would be the discounted payback period of this project assuming that cash flows from Years 1 to 4 are received equally throughout the year? A) 2.31 years B) 3.27 years C) 3.84 years D) 4.18 years
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