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Your firm is investing in a new project. The project has a cost of $130. The expected incremental free cash flow in year 1 is
Your firm is investing in a new project. The project has a cost of $130. The expected incremental free cash flow in year 1 is $65. The expected incremental free cash flow in year 2 is $72 and the expected incremental free cash flow in year 3 is $79. The project has a required rate of return of 8% compounded annually. What is the discounted payback period in years? Your answer should be accurate to two decimal places.
| 2.07 |
| 2.10 |
| 2.04 |
2.13 |
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